Apple briefly surpassed a $4 trillion market value for the first time as surging demand for the iPhone 17 series reignited investor optimism despite ongoing doubts about its AI strategy.
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| Apple briefly reached a $4 trillion valuation as robust iPhone 17 sales boosted confidence, though its slow AI rollout continues to worry investors. Image: CH |
CUPERTINO, United States — October 29, 2025:
Apple Inc. briefly crossed the $4 trillion market capitalization threshold on Tuesday, becoming the third Big Tech company—after Nvidia and Microsoft—to achieve the feat. The milestone underscores the enduring power of the iPhone franchise but also exposes a growing divide between Apple’s hardware success and its lagging artificial intelligence ambitions.
The company’s shares hit a session high of $269.89, lifting its valuation to $4.005 trillion, before closing slightly lower at $3.992 trillion, up 0.1% for the day. Since launching the iPhone 17 lineup and the iPhone Air on September 9, Apple’s stock has climbed 13%, reversing earlier losses and turning positive for the year.
“The iPhone accounts for over half of Apple’s profit and revenue,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “The more phones they can get into the hands of people, the more they can drive people into their ecosystem.”
Apple’s rebound follows a challenging first half of the year, marked by competition in China, rising U.S. tariffs on Asian manufacturing centers, and skepticism about the company’s ability to innovate in AI.
Yet, the early numbers tell a more optimistic story. Data from Counterpoint Research shows iPhone 17 sales outpacing last year’s model by 14% in the U.S. and China, while the slimmer iPhone Air has won converts from Beijing to Moscow. The company has managed to absorb higher tariff costs without hurting profitability.
Brokerage Evercore ISI predicts that the surge in smartphone sales will push Apple’s upcoming September-quarter results above expectations, with strong guidance anticipated for the December holiday quarter.
Despite the sales surge, analysts warn that Apple’s muted approach to artificial intelligence remains a significant overhang.
The company has lagged behind competitors like Nvidia, Microsoft, and Meta, whose valuations have soared on the back of AI breakthroughs. Apple’s Apple Intelligence suite, featuring ChatGPT integration, has suffered delays in Siri’s AI upgrade and key executive departures to rivals.
Reports suggest Apple is exploring collaborations with Alphabet’s Gemini AI, Anthropic, and OpenAI, though no transformative consumer AI product has yet materialized.
“The lack of a well-understood artificial intelligence strategy is clearly one of the things holding back the stock,” said Zaccarelli. “If Apple could show how it plans to integrate AI meaningfully into its ecosystem, investors would likely reward it.”
Apple’s shares currently trade at 33 times forward earnings, a rich multiple compared to the Nasdaq 100’s 27, reflecting investor confidence in its stability and ecosystem appeal. Yet, Apple’s 7% year-to-date gain trails the Nasdaq’s 23%, indicating investors remain cautious.
The company is set to report fourth-quarter earnings on October 30, following an April–June quarter that delivered double-digit growth across key product lines and exceeded Wall Street expectations.
Apple’s brief stay above $4 trillion symbolizes both its dominance in consumer technology and the limits of a hardware-centric strategy in an AI-driven market.
While the iPhone 17 has proven the brand’s resilience, Apple’s long-term valuation—and its ability to keep pace with AI-focused rivals—will depend on whether it can translate its design excellence into intelligent, next-generation experiences.