It’s a big day today in the overall market, as a significant role reversal just happened. After months of being on top, tech titan Microsoft (NASDAQ:MSFT) is no longer the most valuable company around. It’s now second, back behind iPhone maker Apple (NASDAQ:AAPL), which used to be top of the heap before losing ground to Microsoft. And the reason? Apple’s AI plans are striking a real chord with investors, and shares are up over 4% in Wednesday afternoon’s trading.
Earlier today, Apple crossed the Rubicon as shares hit $215.04, which was sufficient to push Apple’s market cap to $3.29 trillion. Microsoft’s market cap, meanwhile, stood at $3.24 trillion, and that extra $50 billion was all it took to push Microsoft back down to number two for the first time in five months.
Apple has been riding a largely uphill wave since it rolled out new AI features during its Worldwide Developer Conference (WWDC) event. That, along with the likely improvements this will mean in iPhone sales, meant a major new investment thesis for Apple.
Hikers, You’ll Win Too
Meanwhile, this fall, those planning to go on long walks, hikes, or color tours will be happy to note that they won’t be completely disconnected when they go into the wild. The release of iOS 18 will come with an exciting new feature that allows users to text while off the grid. Anyone who’s packing at least an iPhone 14 will be able to send and receive text and emojis even when a connection isn’t on hand. That could be handy, and it might well save lives, which would be a very welcome boost for Apple’s public image.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 22 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 18.34% rally in its share price over the past year, the average AAPL price target of $208.47 per share implies 3.49% downside risk.
