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Apple hits $5T valuation as investors rotate away from AI stocks
Apple shares rose to a session high of $342.89 on Tuesday, valuing the company at $5.04tn before easing back to $339.68.
Apple became the second company ever to top the $5tn market valuation mark, as investors reportedly rotated away from AI and semiconductor stocks during a broader tech pullback, Guardian Business reports. Shares reached a session high of $342.89 on Tuesday and put Apple’s market capitalization at $5.04tn, before easing back to $339.68, about 0.8% higher on the day.
The rally was attributed to strong demand for Apple’s products as well as the company’s decision to sit out the AI spending race that is pressuring cash flows at larger tech rivals. Apple’s valuation record came as Nvidia had held the top spot among stocks since June 2025 and was the first company to breach $5tn last October.
The move also coincided with extended weakness across semiconductors and AI linked names. On Tuesday at the start of trading, US chip stocks including Intel, Advanced Micro Devices, Sandisk, Western Digital and Seagate Technology were each down more than 4%. The Nasdaq 100 fell by as much as 1.8% at one point, putting it more than 10% below its early June record high, which is the technical definition of a market correction.
Abroad, South Korea’s market slid to its lowest level since mid-April as semiconductor shares fell sharply, with SK Hynix and Samsung Electronics down more than 10%. Analysts cited renewed worries about AI investment spending, competition from cheaper Chinese chipmakers, and a report that China had begun mass production of homegrown deep ultraviolet chip-making tools.
Latest closeNasdaq Comp. 24,932.08 ▼0.2%