Apple is world's most valuable company again after Microsoft briefly took title

Apple's stock witnessed a blistering rally making it the biggest three-day advance in the shares since August 2020.

Apple overtook Microsoft becoming the world’s most valuable company again flanked by improving investor sentiment over its growth and position with artificial intelligence. Apple's stock witnessed a blistering rally making it the biggest three-day advance in the shares since August 2020. It closed with a market capitalization of $3.285 trillion in contrast with Microsoft at $3.282 trillion. Since January, this marks the first time that Apple closed with a higher market value than Microsoft. 

Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration. Since January, this marks the first time that Apple closed with a higher market value than Microsoft. (Reuters)

Earlier this week, Apple closed in third place behind Nvidia Corp. Rhys Williams, chief strategist at Wayve Capital Management, said, “People have a high degree of conviction that they will be an AI winner, and it seems like this is a market where if you’re an AI winner, you’re being bid up a lot. I assume both Microsoft and Apple will be somewhat of a horse race for the foreseeable future with Nvidia also in contention.”

Rise in Apple's shares comes after the company's AI-focused Worldwide Developers Conference presentation that fueled hopes of a long-awaited rebound in growth as the company's revenue has fallen 4.3% in fiscal second quarter making it the fifth contraction in the past six quarters. 

Bank of America analyst Wamsi Mohan wrote, “AI functionality is likely to drive a multi-year upgrade cycle from faster replacement, more switching, and ASP increases. Apple Intelligence can drive a significant upgrade cycle and consensus estimates are too low.”

Apple also announced a $110 billion buyback plan, the largest buyback program in US history.