After Monday's close, Apple's year-to-date performance finally turned positive "quietly"; This is the latest sign of the market's growing favorability toward the iPhone manufacturer. In terms of market cap growth, Apple was second only to the rapidly rising Nvidia last month.
After closing on Monday,$Apple (AAPL.US)$the year-to-date performance finally quietly turned positive - the latest sign of the market's increasing favorability towards this iPhone maker.
According to market data, Apple's stock price rose 0.9% on Monday, marking the sixth consecutive trading day that the stock has risen. This has also allowed Apple to finally get rid of the fate of cumulative stock price decline year-to-date, with a total gain of 0.8% over the past five months.
The main counterattack of Apple bulls occurred in May. Apple's stock price accumulated about a 13% rise in that month, which was its largest monthly percentage increase since July 2022.
In terms of market capitalization, Apple's market capitalization increased by $336 billion to $2.94 trillion in May, returning to the "$3 trillion club". Since January of this year, Apple's market capitalization had not been able to cross this threshold again before.
In fact, if we calculate by market cap growth, Apple's market cap growth last month was only second to the fast-growing Nvidia behind it. This also seems to indicate that Nvidia's attempt to overtake Apple as the second largest global enterprise market cap may not be easy...$NVIDIA (NVDA.US)$
Earlier this year, although Apple's stock price had fallen by as much as 14% year-to-date, it now has fully recovered from its previous losses. However, compared to other technology giants that have risen sharply, it still lags behind in performance: the Nasdaq 100 Index has risen nearly 11% this year.
However, the recent excellent performance of Apple's stock price has made many industry insiders more optimistic about its future prospects. Compared with some other technology giants that are currently overvalued, Apple, whose stock price has only just begun to gain momentum, seems to have greater potential for growth.
From a fundamental perspective, Apple's recent strong stock price performance is largely due to its latest financial report released in early May. The report gave optimistic performance expectations, easing worries about its growth trend and sales in the Chinese market. The company also announced the largest share buyback plan in US history, totaling $110 billion.
More and more market participants are also optimistic that Apple will incorporate artificial intelligence technology into its upcoming iPhone models, which will encourage more users to upgrade and provide a catalyst for revenue growth. More details about Apple's AI strategy are expected to be announced at the Apple Worldwide Developers Conference on June 10th.
According to insiders who spoke to the media last month, Apple is about to reach an agreement with OpenAI to introduce their technology onto its new iOS operating system, which is part of Apple's broader efforts to introduce AI functionality to its devices. In addition, Apple was also reported in March to have been in talks with Google, hoping to embed Google's Gemini artificial intelligence engine into the iPhone.
Wedbush analyst Dan Ives wrote, "Introducing artificial intelligence technology into the Apple ecosystem will bring plenty of monetization opportunities for services as well as iPhone/hardware."
Edited by Jeffrey