Apple’s surge came after its stock reached an all-time high of $269.20 before settling around $268.60, briefly pushing its market cap beyond $4 trillion. 

The company’s growth has been commendable, hitting $1 trillion in 2018, $2 trillion in 2020, and $3 trillion in 2022. 

Its latest increase was driven largely by strong sales of the iPhone 17 range, which analysts say is outselling previous models, particularly in China and India. 

The firm is also expected to report solid fourth-quarter earnings on Thursday, with notable growth anticipated in services revenue, such as App Store, iCloud, and Apple Music, and wearables, including the Apple Watch Ultra 3 and Vision Pro.

Microsoft, which had briefly slipped below the mark earlier this year, rebounded strongly following its renewed agreement with OpenAI. The deal has deepened the integration of OpenAI’s GPT models across Microsoft’s Azure and Copilot tools. 

According to the company, its 27% stake in OpenAI is now valued at approximately $135 billion, highlighting the scale of investor trust in the AI sector. 

Azure continues to be a central driver of Microsoft’s earnings, with enterprise demand for AI infrastructure and its Microsoft 365 Copilot suite pushing growth to new levels. The company will release its quarterly report on Wednesday.

Meanwhile, Nvidia continues to lead the trillion-dollar race. The chipmaker was the first to reach the $4 trillion milestone in July 2025 and is now nearing $5 trillion in valuation. 

Its performance has been driven by global demand for its H100 and B200 GPUs, key components in training large-scale AI models. Nvidia’s place in the AI hardware market has made it the fastest-growing tech stock of the year.

Alphabet, the parent company of Google, is not far behind, trading at a market capitalisation of around $3.25 trillion. If the current growth in AI and cloud services continues, it could soon join Apple, Microsoft, Nvidia and others in the $4 trillion valuation club.

The iPhone 17 lineup overtook last year’s iPhone 16 series by 14% in early sales across the United States and China, as the base model nearly doubled sales in China. 

Analysts say that promotional discounts and coupons from retail channels in China further spurred demand.

Apple stock climbed 4.5% to $263.70, lifting its market capitalisation to $3.91 trillion and placing it just behind Nvidia, which currently holds the top spot with a valuation of over $4 trillion. The company is now set to become the third in history to reach that level, alongside Microsoft and Nvidia.

“The recent launch of online orders in China may be a positive tailwind for the Dec-qtr, as initial delivery time data reflects stronger initial demand relative to other regions at launch,” Evercore ISI analysts wrote in a note. 

The brokerage recently added Apple to its Tactical Outperform List, pointing to expectations that the company will surpass Wall Street forecasts for its current quarter and deliver optimistic guidance for the next.

Apple has been working to recover ground in China after a slow start earlier this year. The tech giant had faced competition from Huawei’s Mate 60 Pro and rising nationalist opinion that favoured local brands.

But the decision to open direct online orders in China, combined with faster delivery times, appears to have reignited momentum in the region.

Art Hogan, chief market strategist at B. Riley Wealth, said, “They rolled out the latest version of their iPhone and it’s doing much better than anticipated … the demand trends for the company’s iPhones are now on the front foot.”

In September, Apple unveiled its latest product range, including the thinner iPhone Air, while maintaining prices despite concerns over potential U.S. tariffs.

Earlier in the year, the company’s stock had been weighed down by trade issues and high import duties on goods from Asian manufacturing hubs such as China and India.

However, trust began to return in August after Apple announced a $100 billion investment plan in the United States, a move seen as both a strategic buffer against tariff risks and a reassurance to investors about its long-term outlook.

The rally in Apple’s shares also boosted suppliers such as Taiwan Semiconductor Manufacturing Company (TSMC), Hon Hai Precision, and LG Innotek.

Apple’s strong performance comes with a rally in the technology sector, driven by growing demand for AI chips, resilient consumer spending, and a change by investors towards mega-cap stocks. If the growth continues, Apple could soon join Nvidia and Microsoft in the elite $4 trillion club.

The company is scheduled to report its quarterly earnings on October 30.

Per Reuters, company’s market capitalisation climbed to $3.86 trillion, putting it ahead of Microsoft’s $3.69 trillion valuation and making it the new front-runner in the space.

Nvidia’s surge comes on the back of its fiscal 2025 results, which showed an astonishing 114% year-on-year revenue jump to $130.5 billion. Its net income grew 145% to $72.9 billion. 

Most of that growth is concentrated in its data centre division, which now contributes over 80% of its total revenue, driven largely by hyperscalers like Microsoft, Amazon, and Meta who are aggressively expanding AI workloads.

Microsoft may not be far behind, with its valuation close on Nvidia’s heels. It is still doing great thanks to its investments in OpenAI, enterprise Copilot tools, and its AI-powered Azure cloud services. 

But for now, Nvidia sits at the top, powered by massive infrastructure deals and real-world deployment of its H100 and upcoming Blackwell GPUs, which are supporting the most complex AI systems across the globe.

Again, Meta’s market cap rose 14% to $1.86 trillion, Broadcom followed with a 13.9% increase to $1.3 trillion and Amazon also gained 7%, climbing to $2.33 trillion. All three benefited from strong investor confidence in their AI strategies and cloud infrastructure plays.

Meanwhile, Tesla was the outlier, its valuation slipped by 8.3% to $1.02 trillion. The drop came after a high-profile clash between CEO Elon Musk and U.S. President Donald Trump. 

Musk’s objection to Trump’s spending bill and the President’s response, threats to cut federal subsidies for Tesla and SpaceX, resulted in a 14% one-day drop in Tesla shares, wiping out $150 billion in value. The episode triggered investor jitters and regulatory speculation that has yet to settle.

Apple, though still among the top three with a $3.1 trillion market cap, has seen its momentum cool. Its December 2024 peak of $3.92 trillion is still unmatched. Slowing iPhone sales and delayed integration of advanced AI technologies have held back its valuation while rivals capitalise on faster innovation cycles.

Meanwhile, analysts are preparing for a new benchmark. “We believe both Nvidia and Microsoft will hit the $4 trillion market cap club this summer and then over the next 18 months the focus will be on the $5 trillion club … as this tech bull market is still early being led by the AI Revolution,” said Daniel Ives of Wedbush Securities.

The chipmaker’s rise is largely attributed to the increasing global demand for artificial intelligence (AI) technologies, driving its shares to grow an extraordinary 850% since late 2022.

By the close of the trading day, Nvidia’s shares rose by 2.9%, strengthening its lead over Apple, which closed with a market valuation of $3.38 trillion. 

Nvidia previously surpassed Apple’s valuation in June, albeit briefly, marking this achievement as part of a competitive dynamic between the two tech giants. 

As of now, Nvidia’s standing reiterates its role as a core enabler in the AI infrastructure, which analysts and investors expect will continue to experience a robust growth cycle.

In recent quarters, Nvidia’s influence has become a defining element in the performance of the S&P 500, where it now constitutes 7% of the index’s weight. Its surge has been key in driving approximately a quarter of the index’s 21% gain this year. 

Industry observers note that Nvidia’s growth aligns with the AI investment trend, with leading tech firms like Microsoft, Amazon, and Alphabet, all heavily reliant on Nvidia’s chips to power their AI advancements and cloud infrastructure. 

These firms are among Nvidia’s biggest customers, emphasising the interconnectedness of major tech companies in pushing AI forward.

Economic challenges for Apple have also played a part in the market dynamics. Apple’s recent earnings report flagged slowing revenue growth and struggles in the Chinese market, which analysts believe have softened its overall valuation. 

Nvidia, in contrast, has managed to soothe investor concerns related to its Blackwell chip delays and sustain confidence in its long-term prospects. 

Wall Street analysts forecast a continued upward trend for Nvidia’s financial performance, with revenue expected to more than double this fiscal year and increase by a further 44% in the following period.

With the booming demand for AI, recent developments highlight the expansive investment into the technology. Taiwan Semiconductor Manufacturing Co., one of Nvidia’s key partners, reported strong sales aligned with AI demand, and OpenAI recently secured a $157 billion valuation. 

Nvidia remains a solid supplier for AI-focused companies like OpenAI, and this reliance has put the chipmaker at the forefront of the AI boom, with sustained support from industry giants like Meta, Amazon, and Microsoft.

Even with Apple’s recent introduction of a small-scale generative AI system, Nvidia’s GPUs continue to power some of the world’s most advanced AI models. 

Although OpenAI and other companies have begun exploring alternative suppliers, Nvidia’s technological advancements and market growth in the AI sector remain unmatched.