Why Apple Will Be the First to Reach a $4 Trillion Market Cap

The competition to reach a $4 trillion market cap is heating up, with leading technology companies such as Apple, Nvidia, and Microsoft vying for the title. According to Dan Ives, managing director and senior equity analyst at Wedbush Securities, Apple is poised to become the first U.S. company to achieve this milestone, followed closely by Nvidia and Microsoft.

Apple's Supercycle and AI Integration

Ives highlights that Apple is entering an “AI-driven supercycle” with the launch of the iPhone 16, which is expected to begin in the December quarter as new features and enhancements are introduced. He predicts that around 20% of the global population will experience AI through Apple devices in the upcoming months, which he believes could result in historic sales for the iPhone, surpassing 240 million units.

Pent-Up Demand for Upgrades

Looking ahead, Ives forecasts that Apple will reach the $4 trillion market cap in 2025. He notes that there are approximately 300 million existing iPhones that have not seen an upgrade in over four years. This creates an unprecedented demand for phone upgrades, which Ives believes will fuel Apple's growth moving forward. Following Apple, he expects Nvidia, known for its significant role in AI technology, to also reach this milestone, with Microsoft trailing shortly after in mid-2025.

As the market continues to evolve, the technology sector seems poised for explosive growth, and Apple's innovative approach could very well lead the charge towards achieving the $4 trillion mark.

Apple, Market, AI