- Apple shares rose 7% to a record high as investors welcomed the developments announced at the company's WWDC event.
- Apple's market capitalization rose by $198 billion on Tuesday.
- The iPhone maker's market capitalization now puts it within $29 billion of overtaking Microsoft to become the world's largest company.
Apple's shares surged as much as 7% on Tuesday, hitting a record high of more than $200 per share.
The stock price increase came a day after Apple's keynote at its WWDC event, which was focused on the company's new generative AI software offerings.
The company's shares were initially sold off, with Apple shares falling 2% on the Monday following the WWDC event.
But a flurry of positive analyst commentary from Wall Street sent Apple shares soaring, adding roughly $198 billion to its market capitalization at its high on Tuesday.
Citi analysts called it “the best WWDC ever,” while Goldman Sachs analysts said the integration of ChatGPT with a more conversational Siri assistant should drive upgrade cycles for iPhone and Mac devices.
That's because the new AI features only work on iPhone 15 Pro models and later, and Macs with the M1 processor chip or later.
“We are encouraged by the financial implications of today's announcement and the product features should drive demand for product upgrades,” Goldman Sachs said.
Finally, JPMorgan said the fact that the iPhone 15 Pro will be able to run new AI features will be a key selling point for emerging markets after the iPhone 16 launches in September.
“This will help accelerate AI-related upgrade cycles in several emerging markets. Local market forces will encourage Apple to focus its marketing on the latest generation of its iPhone series with consumer affordability in mind,” JPMorgan said.
Apple's stock price surge on Tuesday helped it once again solidify its position as the world's second-largest iPhone maker, reclaiming the title from Nvidia.
As of Tuesday afternoon, Apple was $22 billion away from overtaking Microsoft to once again become the world's most valuable company.
