Apple CEO Tim Cook spoke during an announcement of new products on the Apple campus in Cupertino, California on June 10. The company’s market cap closed at roughly $3.29 trillion on Thursday, making it the most valuable public company in the United States, surpassing Microsoft with a market cap of $3.28 trillion. The stock climbed after announcements at its annual Worldwide Developers Conference, including generative AI features for iPhones. Apple shares rose 0.6% on Thursday and have increased by 8.8% so far this week, while Microsoft shares rose 0.1% on Thursday.
Apple’s rise comes just a week after Nvidia surpassed it to become the second-largest public US company, with Nvidia now ranking third behind Microsoft. Apple announced a partnership with OpenAI, the creator of ChatGPT, to power some of its phone’s features. Although the partnership may give Apple a boost, aligning with a company that has yet to gain public trust has raised criticism, particularly for taking user inputs and incorporating them into ChatGPT’s data set, which could lead to privacy concerns for a company known for prioritizing user safety and anonymity.
Despite potential challenges, a focus on AI could drive growth for iPhone sales and services over the long term as users are waiting longer to upgrade devices and economic uncertainties impact consumers, especially in China. Apple also faces regulatory scrutiny in Washington, but a strong presence in the AI space could continue to drive innovations and revenue for the company in the future.