Apple and Microsoft hit $4tn valuations
Apple's stock has climbed 13% since the launch of iPhone 17 series and the ultra-thin iPhone Air in September
Apple and Microsoft have both soared past the $4 trillion market capitalisation mark.
This is the first time Apple has ever crossed $4 trillion, securing its position as only the third company in the world to do so, following Nvidia and Microsoft.
Microsoft first passed the threshold in July but briefly slipped to $3.9 trillion before regaining $4 trillion on Tuesday, buoyed by news of a new agreement with OpenAI.
Apple shares closed at $269 after hitting an all-time high of $269.89, marking a modest 0.1% gain on Tuesday.
The company's stock, once struggling earlier this year due to soft demand in China and concerns about US tariffs, has now climbed 13% since 9th September, when the iPhone 17 series and the ultra-thin iPhone Air launched.
The turnaround is striking: Apple vaulted from $1 trillion in 2018 to $2 trillion in 2020 and $3 trillion in 2022. Now, in 2025, the company has joined the $4 trillion club.
Early data suggests the iPhone 17 lineup is significantly outpacing its predecessor, delivering 14% stronger initial sales in both the US and China, according to Counterpoint Research.
Analysts say the slim iPhone Air is helping Apple claw back customers lost to rivals like Samsung.
The recovery has been global - consumers from Beijing to Moscow reportedly returned to Apple stores in droves, despite the company absorbing higher production costs from tariffs targeting its China- and India-based manufacturing.
Evercore ISI, a leading brokerage, now expects Apple to beat Wall Street estimates for the September quarter and issue an optimistic forecast for the holiday shopping season.
Even with its booming stock performance, Apple has faced criticism for lagging behind in the AI race. Its Apple Intelligence suite is still in rollout mode, and a major Siri upgrade has been pushed into next year.
Sources say the company has been exploring collaboration options with OpenAI, Anthropic and Alphabet's Gemini AI, leaving investors eager to see which partnership solidifies.
Microsoft's resurgence
Microsoft re-crossed the $4 trillion mark on Tuesday after its stock rose 2.2%, driven by its newly inked agreement with OpenAI.
The deal will transform the ChatGPT maker into a public benefit corporation and deepen Microsoft's integration with the most visible AI developer in the world.
Under the terms, Microsoft will take a 27% equity stake, worth an estimated $135 billion, nearly ten times its total investment since 2019.
OpenAI will commit up to $250 billion in spending on Microsoft's cloud services and guarantee access to its AI innovations through 2032.
The partnership strengthens Microsoft's AI flywheel: Azure cloud revenue continues to accelerate thanks to demand for training and deploying cutting-edge large language models.
Alphabet, the parent company of Google, is also approaching $4 trillion landmark, currently valued around $3.25 trillion and driven by advancements in generative AI and its own cloud ecosystem.