Apple becomes the world's second $5 trillion company
Apple has become the second company to reach a $5 trillion market valuation, benefiting from investor concerns over expensive AI investments and strong demand for its products.
Apple has become only the second company in history to reach a $5 trillion market valuation, as investors moved away from artificial intelligence and semiconductor stocks during a wider technology sell-off.
The iPhone maker’s shares climbed to a record session high of $342.89 on Tuesday (28.07.26), giving the company a market capitalisation of $5.04 trillion (£3.78 trillion) before easing slightly to around the $5 trillion mark.
Apple is now the world’s most valuable company, overtaking Nvidia, which had held the top position since June 2025. Nvidia became the first company to surpass the $5 trillion milestone last October, driven by huge demand for its AI chips.
Unlike many of its technology rivals, Apple has largely avoided the expensive AI infrastructure race that has pushed companies including Google and Microsoft to increase spending on data centres and computing power.
The company’s latest valuation surge comes as investors grow increasingly cautious about the scale of AI investment. Concerns over rising costs, borrowing to fund data centre expansion and competition from cheaper Chinese technology have triggered a global sell-off in AI-related stocks.
Google recently increased its expected AI capital spending to as much as $205 billion this year while reporting negative free cash flow for the first time in its history. The news intensified concerns about whether the industry’s huge investments will deliver sufficient returns.
Apple has been somewhat insulated from those worries due to its slower AI rollout. The company has struggled to develop some artificial intelligence features internally and has instead relied on partnerships, including using Google technology to support a planned Siri upgrade.
Analysts said Apple’s decision to avoid major AI infrastructure spending has helped reassure investors.
Dipanjan Chatterjee, vice-president and principal analyst at research firm Forrester, said: "Apple has resisted the AI spending race, betting that customer experience – not infrastructure investment – will ultimately determine the winners."
Demand for Apple’s products has also supported the company’s rise. Analysts said steady iPhone pricing helped encourage customers to buy devices before possible future increases, while Apple has introduced a leasing programme in the US to make its products more affordable through monthly payments.
Apple shares have risen around 24 per cent this year, outperforming the other members of the 'Magnificent Seven' group of major US technology companies.
The company is expected to report its latest quarterly results later this week, with analysts predicting strong revenue growth.
