Apple has overtaken Microsoft to become the world’s most valuable company as investors applauded its plans to use artificial intelligence (AI).
On Wall Street, shares of the iPhone maker rose more than 5 percent to an all-time high above $218, giving it a value of more than $3.3 trillion, or $2.6 trillion. pounds sterling.
That means it was worth more than Microsoft last night, which is valued at just under $3.3bn (£2.5bn).
And chipmaker Nvidia – also worth more than $3 trillion – remains the third most valuable company in the world.
By comparison, the entire FTSE 100 of leading London stock market companies is valued at just over £2 trillion.
Big Apple: In a great session on Wall Street, Apple shares rose more than 5% to an all-time high above $218, giving the iPhone maker a value of more than $3.3 trillion .
Apple shares have risen more than 12 percent since Monday, when it announced it joined forces with OpenAI, giving iPhone users access to use its ChatGPT AI technology.
The rise has added £290bn to its value.
As a battle for AI dominance rages between American tech giants, Apple CEO Tim Cook explained how the company would incorporate it into its devices.
And it confirmed speculation that it is integrating its products with ChatGPT.
This will allow users to ask a question through its Siri feature and the AI chatbot will give an answer, which can be used to create a bedtime story for children and add images, at no additional cost to customers.
Michael James, managing director of equity trading at Wedbush Securities, said: “All those questions about Apple lagging from an AI technology standpoint have been answered.”
But he added that Apple, Nvidia and Microsoft will continue to fight to win the AI race over the next year.
Microsoft first surpassed Apple’s market capitalization earlier this year.
And this month, Nvidia briefly surpassed Apple’s stock before pulling back.
But some experts have said Apple’s rally may be a poisoned chalice.
Dan Coatsworth, analyst at AJ Bell, said: ‘Apple overtaking Microsoft puts it in the spotlight.
The iPhone maker has been a laggard among mega-cap tech names this year due to concerns about sales of its core product in China and falling behind in the AI race.
“The first issue still needs to be resolved, but progress with AI means it is now seen as a catch-up candidate, hence the rally.”
