Apple briefly surpassed a $4 trillion market capitalization for the first time on Tuesday, becoming the third Big Tech firm to reach the milestone, as strong demand for its latest iPhone models helped ease concerns about its slow progress in artificial intelligence.
The stock climbed to an intraday high of $269.89, giving Apple a valuation of $4.005 trillion, before closing up 0.1% at $3.992 trillion. Shares have gained about 13% since the launch of the new iPhones on September 9, marking a sharp turnaround that put the stock back in positive territory for 2025.
“The iPhone accounts for more than half of Apple’s profit and revenue, and the more devices they sell, the more they pull consumers deeper into their ecosystem,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Earlier this year, Apple’s shares lagged due to worries about stiff competition in China and uncertainty over how it would handle high U.S. tariffs on Asian manufacturing bases such as China and India.
The latest smartphone lineup—including the iPhone 17 series and the new iPhone Air—has reignited sales momentum, drawing strong demand from Beijing to Moscow in the weeks following launch. Despite the tariff pressures, Apple has absorbed much of the added costs.
Analysts noted that the iPhone Air’s ultra-slim design could help counter rivals like Samsung Electronics, while early sales of the iPhone 17 outpaced last year’s model by 14% in the U.S. and China, according to data from Counterpoint Research.
Brokerage Evercore ISI said robust demand for the new models could help Apple beat market expectations for the September quarter and issue optimistic guidance for the December period.
Apple now joins Nvidia and Microsoft in the $4 trillion club, with Nvidia leading at nearly $5 trillion.
Still, Apple’s cautious stance on artificial intelligence continues to weigh on investor sentiment. Reports suggest the company has lost several senior AI executives to Meta. Its long-awaited “Apple Intelligence” suite, which includes ChatGPT integration, has rolled out slowly, while major AI upgrades to Siri have been postponed until 2026.
The company is said to be exploring collaborations with Alphabet’s Gemini, Anthropic, and OpenAI.
“The lack of a clear AI strategy remains an overhang for the stock,” Zaccarelli said. “If Apple can show how AI will meaningfully enhance its products and excite consumers, it could transform the narrative entirely.”
Apple delivered its strongest quarterly performance in years during the April–June period, posting double-digit growth across key segments and issuing better-than-expected forecasts. The company will report fourth-quarter results on October 30.
According to LSEG data, Apple shares currently trade at about 33 times projected 12-month earnings, compared to 27 times for the Nasdaq index.
