Apple Quietly Hits $3 Trillion Value — Without the Help of AI

3 min readJul 4, 2023

Key takeaways

iPhone maker Apple has officially crossed the $3 trillion threshold as of Friday
The stock retreated slightly on Monday thanks to issues with the hotly anticipated Vision Pro
Apple now has a 7.6% weighting in the S&P 500, which outsizes its influence on the entire index

Apple rounded out the end of last week by becoming the first company to ever reach the lofty heights of a $3 trillion valuation. The stock moves came from general market optimism over interest rates and Apple’s expansion into new markets, but a blow to the Vision Pro’s production schedule has dented the stock today. Here’s the lowdown.

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What happened with Apple’s stock?

Apple officially crossed the $3 trillion value mark, becoming the most valuable company in the world, after the share price climbed another 2.3% on Friday to hit $193.97. The move on Friday was down to a mix of optimism from traders on the Fed’s interest rate hike crusade and bets on Apple’s expansion into new markets.

The stock has only ever flirted with the $3 trillion threshold once before, back in January 2022, when it reached the pivotal figure during intraday trading, but this is the first time Apple’s closed above it.

Apple’s share price has steadily climbed 54.3% this year, with the new market cap putting Apple’s value at more than 200 of the S&P 500 companies combined.

What’s next for the share price?

The stock fell slightly on Monday morning after news emerged that the Big Tech behemoth would need to slash its production targets for the much-anticipated Vision Pro headset, but it’s likely to be a temporary blip rather than a downward spiral.

While Apple has stayed noticeably schtum on the ‘AI’ buzzword — at the Apple developer conference this year, the focus was on the term ‘machine learning’ instead — the stock has also likely gained from the AI halo effect. If Apple’s eventual Vision Pro launch succeeds and the company moves into the field, it could be a rocket booster for the stock in 2023 and beyond.

But a company this big has its own issues. Apple now makes up 7.6% weighting in the S&P 500, which is the biggest in the index’s history and gives Apple stock outsized influence. With other mega-cap stocks such as Tesla, Meta and Nvidia, which hit the $1 trillion mark earlier this year, the S&P 500 becomes riskier than ever as the whole index could be dragged down if one of these stocks has a bad day.

The bottom line

Apple has clear staying power and has become an investor favorite as a solid performer, so its $3 trillion valuation came at a steady pace rather than with a bang. But the company’s valuation is now so high it has a lot of power over the S&P 500 index, which some investors may view as a risk. For now, though, Apple stock looks set to continue its march upwards.

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