Apple's stock price rose to its biggest gain in more than a year and a half on Tuesday, adding $215 billion to its market capitalization in a single day, marking the biggest daily surge in its own history. The stock price has risen more than 25% from its low point in April this year, entering a technical bull market. This round of rebound has increased its market value by more than $500 billion, and its market capitalization has reached over $3 trillion again.
TOP20 US stock trading volume$Apple (AAPL.US)$The stock price hit a historical high for the first time this year, also the first intraday record high since last December, highlighting the continuous improvement of investors' confidence in Apple. In terms of product structure, the operating income of products with 10-30 billion yuan was 401/1288/60 million yuan respectively. The overall sales volume of the company in 2023 was 18,000 kiloliters, with a year-on-year increase of +28.10%, showing significant growth.
Apple's stock price broke through the $200 mark in intraday trading, closing up nearly 7.3%, the largest increase since November 10, 2022, and a new closing high since December 14, 2023. It led S&P component stocks in rising for the first time since November 30, 2021, and also led the Dow Jones and Nasdaq 100 indexes among the component stocks on Tuesday.
Due to the sharp rise in stock prices, Apple's market value soared by about $215 billion in a single day on Tuesday, setting a new record for its largest daily increase in market value and the third largest daily increase in the history of U.S. stocks.
As of the close on Tuesday, Apple's stock price had risen nearly 25.6% from its low on April 19 this year, entering a technical bull market. This rebound has increased its market value by more than $500 billion, exceeding the $3 trillion market cap threshold.
It should be noted that after Monday's event, Apple's initial response in the stock price was not good, closing down nearly 2%. According to statistics, in terms of the performance of Apple's stock price on the day of the WWDC event every year, this is the worst performance since 2010, and the fourth worst performance in the entire iPhone era.
Apple's latest stock price high came after the company's annual Worldwide Developers Conference (WWDC). This Monday, at the WWDC conference, Apple demonstrated a series of AI-related features and announced a partnership with OpenAI to integrate ChatGPT into the iPhone. Many investors were previously concerned that Apple was lagging behind other large tech companies in the AI boom, and the latest WWDC made Apple's strategy clearer.
D.A. Davidson analyst Gil Luria upgraded Apple's rating from neutral to buy and said in a report:
Apple's AI conference has sparked hope that consumers will pay for the next-generation iPhone, and AI features may provide the growth catalyst that investors have been looking for. Apple not only has consumers' information, but also their trust. It can provide deeply integrated features that independent chat applications, PC computers and Android devices may not be able to fully replicate.
Morgan Stanley analysts said:
Apple's AI capabilities make the company the most differentiated consumer digital agent. These features will drive consumers to upgrade their iPhones, accelerating the device replacement cycle. When AI features are first launched in the fall, Apple still needs to make some improvements, but the foundation for resuming growth and more sustained outstanding performance is in place.
At the WWDC, we focused on key details, and we are more confident that Apple is about to usher in a multi-year product update, which supports our buy rating, $216 target price, and $270 bull market valuation.
Analysts at Bank of America also remain optimistic about Apple, saying:
These features will bring a cycle of upgrading to an AI intelligent iPhone. Bank of America maintains a buy rating on Apple because of its commitment to multi-year upgrade cycles, the potential for margin expansion, and service growth.
Evercore analysts said:
After attending the WWDC conference, their confidence in Apple's AI strategy doubled, especially because they believe it will drive users to upgrade their devices. Limiting Apple Intelligence to iPhones sold last year makes us even more convinced that AI can help kick off the iPhone super cycle.
Apple's recent sharp rise began with the May earnings report, which eased concerns about its growth. At that time, Apple also announced the largest stock buyback program in U.S. history, with an amount of $110 billion. Benefiting from this earnings report, May was the best-performing month for Apple's stock price since July 2022.
Although Apple's stock price hit a new historic high on Tuesday, it has only risen nearly 8% so far this year, still lagging behind the 14% increase of the Nasdaq 100 index. Other large technology companies, including Microsoft, Amazon, Alphabet, and Meta, have achieved double-digit increases, and chip manufacturer Nvidia, focused on artificial intelligence, has soared by over 140%, with a market cap that once exceeded Apple's.
Among the 'Seven Sisters' of US stocks, only Tesla has performed worse than Apple this year, with its stock price falling by more than 30%.
Editor/Somer