Apple briefly surpassed Microsoft as the world's most valuable company on Wednesday, fueled by investor enthusiasm for its AI plans, unveiled at its annual WWDC conference on Monday. The company's market cap reached $3.244 trillion in morning trading, edging out Microsoft, but the lead didn't hold until the close.
The race for dominance between these tech giants has been heating up, with Microsoft surpassing Apple earlier this year. More recently, NVIDIA briefly claimed the second spot, driven by insane demand for its datacenter AI chips.
Apple's long-awaited entry into the AI space, which they are calling "Apple Intelligence," includes weaving AI into its core apps and devices, from iPhones to Macs. This strategy will also see Apple partner with OpenAI to include ChatGPT features.
Investors responded positively to Apple's AI announcements, with shares surging over 7% on Tuesday and continuing to rise on Wednesday. Analysts from Morgan Stanley, Evercore, and Bank of America are all buillish and predict that Apple's AI features will drive sales of new iPhones, potentially kicking off an "iPhone super cycle."
However, it's far from guaranteed that the AI capabilities showcased by Apple will function as seamlessly as advertised or be compelling enough to drive a significant number of users to purchase new iPhones. Especially considering the fact that most of these features won't be available until well after the upcoming iPhone release this fall.
Only time will tell if Apple's AI ambitions will pay off, but for now, the company has certainly recaptured the attention of investors and the tech world.