Apple Inc. (AAPL) surged ahead of Microsoft Corp. (MSFT) to become the world’s most valuable company once again, thanks to its strides in artificial intelligence (AI) technology. Apple’s shares skyrocketed nearly 4%, reaching an all-time high of $215.04, and propelling its market valuation to an impressive $3.29 trillion. This leap placed Apple ahead of Microsoft’s $3.24 trillion market cap for the first time in five months .

The driving force behind Apple’s resurgence is its bold foray into AI, showcased at its annual developer conference. CEO Tim Cook and his team unveiled a suite of AI-enabled features that promise to enhance user experience across its product lineup. This includes a more interactive Siri, which now integrates seamlessly with messages, emails, calendars, and even third-party apps. Analysts have hailed these innovations as potential game-changers that could spur a significant upgrade cycle for iPhones .

Michael James, managing director of equity trading at Wedbush Securities, highlighted the impact of Apple’s AI advancements: “All those questions about Apple lagging from an AI technology standpoint were answered at the Worldwide Developers Conference. The AI capabilities that are going to be integrated into the upcoming iPhones made it very apparent that there will clearly be demand for a significant upgrade cycle.”

Apple’s ascent comes amidst a broader rally in tech stocks, with the tech-heavy Nasdaq index hitting a record high. Signs of cooling inflation have buoyed the sector, creating a favorable backdrop for tech giants. Apple’s recent performance has also been buoyed by a strong quarterly report and a record $110 billion stock buyback plan unveiled in May .

Despite its recent underperformance relative to peers like Microsoft and Alphabet (GOOGL), Apple’s shares have rebounded, rising about 12% in 2024. This resurgence contrasts with Nvidia (NVDA), which saw a 154% increase this year, briefly surpassing Apple in market value last week, and Tesla (TSLA), which is down about 30% .

Apple’s stock surge underscores the market’s confidence in its AI strategy and future growth prospects. As the company continues to innovate and integrate advanced AI features into its ecosystem, it reaffirms its position not only as a tech leader but also as a pivotal player in the evolving AI landscape.

For further details on Apple’s market performance and its latest AI innovations, check out the full report on Reuters.