Apple Nears Historic $4 Trillion Valuation, Retains Market Leadership

CIOTechOutlook Team | Friday, 03 January 2025, 05:00 IST

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Apple maintained its position at the forefront of global firms in market value, approaching a landmark $4 trillion valuation. This increase was driven by investor excitement regarding the company's expected AI improvements, designed to boost weak iPhone sales. By the end of 2024, Microsoft held the third position with a market worth of $3.1 trillion, trailing behind Alphabet Inc and Amazon, both valued at around $2.3 trillion.

Nvidia became the largest global gainer in market capitalization for 2024, fueled by increasing interest in artificial intelligence and strong demand for its AI-focused chips across multiple sectors. The semiconductor firm's market value rose by more than $2 trillion last year, hitting $3.28 trillion by the end of 2024, positioning it as the second-most valuable publicly traded company globally. At the close of 2023, its market worth was $1.2 trillion.

In 2024, these tech firms greatly enhanced their individual global indexes, as the S&P 500 index jumped 23.3% and the Nasdaq rose 28.6%. Even with the elevated valuations of shares, ongoing U.S.-China tariff conflicts, and possibly slower cuts to U.S. interest rates, analysts maintain a positive outlook for the enduring robust performance of tech companies in 2025.

Daniel Ives from Wedbush anticipates a 25% increase in tech stocks by 2025, crediting the expected growth to a reduced regulatory landscape under Donald Trump, upcoming powerful AI initiatives, and a solid foundation for Big Tech and Tesla in 2025 and later.

"We believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and $2 trillion+ of incremental AI cap-ex over the next 3 years," he said.

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