Get Set for Apple's $4 Trillion Market Cap Milestone!

Christmas has arrived, and Apple is now at the brink of a momentous achievement. With a market capitalization of around $3.9 trillion heading into the Christmas season, it requires merely a 2.46% uptick to reach the coveted $4 trillion mark. As such, the first trading day after Christmas could potentially witness this historic milestone.

Apple is on the verge of becoming the world's first $4 trillion company, leading the race ahead of Nvidia and Microsoft. Since early November, its shares have jumped by about 16%, adding around $500 billion to its market cap. On Tuesday, Apple closed at around $258.2 per share, and the stock has soared nearly 35% since January 1.

This upward trend is driven by investors' enthusiasm for Apple's long - awaited AI enhancements, which are expected to revitalize iPhone sales. The launch of iOS 18.2 for iPhone 15 Pro and iPhone 16 users, with features like Visual Intelligence, showcases Apple's foray into AI. Analysts anticipate strong iPhone sales during the Christmas shopping season. Daniel Ives from Wedbush forecasts Apple's stock to exceed $300 per share within 12 months and its market cap to surpass $4 trillion by early 2025.

 

Apple's iPhone sales have shown signs of recovery. In the July - September period, iPhone sales reached $46.22 billion, a 6% increase from the same time last year, reversing two consecutive quarterly declines.

However, Apple's journey to $4 trillion is not without considerations. The company has faced criticism for its slow AI strategy roll - out compared to peers. Despite this, recent AI integrations, like starting to incorporate OpenAI's ChatGPT in December after announcing generative AI plans in June, are winning investor favor.

Analysts' views on Apple's future vary. While some, like Morgan Stanley's Erik Woodring, remain bullish, expecting iPhone demand to improve as AI features expand, others, like Warren Buffett's Berkshire Hathaway, have sold Apple shares this year due to valuation concerns. Apple also faces risks such as potential retaliatory tariffs if Donald Trump, if elected, enacts tariffs on Chinese - made goods, though some analysts believe Apple products may be excluded.

In conclusion, Apple's approach to the $4 trillion market cap is a significant event in the tech and investment landscape. Whether it will achieve this milestone right after Christmas remains to be seen, but it undoubtedly reinforces Apple's position as a major player in the global market, and investors will be closely watching its every move.