Apple, Nvidia, and Microsoft are all in a tight race to reach $4 trillion market capitalizations in the coming year, according to Wedbush analyst Dan Ives. Apple recently introduced Apple Intelligence at its Worldwide Developers Conference, causing its stock price to hit an all-time high of $215 per share. This surge in stock price pushed Apple’s market capitalization above Microsoft’s, reclaiming its title as the world’s most valuable company.
Currently, Apple’s market cap sits at $3.3 trillion, while Microsoft is at $3.26 trillion and Nvidia at $3.12 trillion. Despite this, Nvidia has been making significant gains in the market, with its stock briefly surpassing Apple’s value last week. The chipmaker’s success is attributed to the growing sales of its semiconductors, also known as GPUs.
Ives referred to the rise of generative AI technologies as “the 4th Industrial Revolution,” highlighting Nvidia’s GPU chips as essential components driving this technological shift. He emphasized that Nvidia’s chips are becoming the new valuable resource in the tech industry, likening them to gold or oil.
While Nvidia is making strides, Ives believes that both Microsoft and Apple have promising futures ahead. He has been predicting a $4 trillion market cap for Apple for some time now, anticipating that the company’s focus on AI technologies will drive growth in the coming year. Despite a temporary drop in stock price following the Apple Intelligence announcement, history shows that Apple often experiences a rebound shortly after such events.
Overall, the tech industry is witnessing fierce competition among these giants as they strive to reach new market capitalization milestones. With each company leveraging cutting-edge technologies and innovation, the race to $4 trillion is sure to be an exciting one to watch in the months ahead.