Two tech titans just crossed into rarefied air. Apple and Microsoft both pushed past the $4 trillion market cap threshold on Tuesday, joining an exclusive club that puts them behind only Nvidia in the race for market dominance. The milestone comes as both companies gear up for crucial earnings reports this week.
The $4 trillion club just got crowded. Apple and Microsoft both breached the milestone market cap on Tuesday, cementing their positions as the world's most valuable companies behind only Nvidia, which sits comfortably at $4.6 trillion.
Microsoft shares climbed about 3% after the company finalized its 27% stake in OpenAI's for-profit business structure. The move validates Microsoft's early bet on the ChatGPT maker, a partnership that began in 2019 and has become central to the company's AI strategy. The timing couldn't be better - Microsoft reports quarterly earnings Wednesday, with investors eager to see how its AI investments are translating to revenue.
Apple reached the milestone on a different trajectory entirely. The iPhone maker has been on a tear, with shares rising 11 out of the past 12 trading days. The surge stems from surprisingly strong sales of the iPhone 17 models released in September, which appear to be outperforming their predecessors in ways that caught even bullish analysts off guard.
"Apple shares are heading into the upcoming earnings print with a greater halo of positivity than any time in the past year," JPMorgan analyst Samik Chatterjee wrote in a Monday note, raising his price target to $290 per share. The optimism reflects not just iPhone sales but Apple's nimble supply chain maneuvering that's helped it sidestep potential tariff headaches.
The company has quietly shifted much of its U.S.-bound manufacturing to India and Vietnam, reducing dependence on China while maintaining friendly relations with the Trump administration around domestic investment. "Announcement of an increased pace of domestic investment in combination with a rapid shift in product manufacturing for the US market outside of China has improved Apple's positioning in the tariff landscape," Chatterjee noted.
This marks Microsoft's second trip past $4 trillion - the company briefly hit the milestone in July before retreating. But this time feels different. The OpenAI partnership is paying dividends across Microsoft's entire product suite, from Azure cloud services to Office productivity tools. Corporate customers are increasingly choosing Microsoft's AI-powered solutions over competitors, creating a virtuous cycle of growth.