Apple and Microsoft each hit $4 trillion market cap milestone, trail Nvidia’s $4.6 trillion lead

Apple and Microsoft are once again proving why they dominate Wall Street. Both tech giants surpassed the $4 trillion market capitalization mark on Tuesday, according to CNBC. The surge reflects growing investor confidence in their earnings strength and long-term bets on artificial intelligence. The milestone places them just behind Nvidia, which continues to hold the top spot with a staggering $4.6 trillion valuation.

The milestone comes just a week after Apple came within striking distance of a $4 trillion valuation, fueled by a 14% surge in iPhone 17 sales across the U.S. and China. With this latest rally, Apple and Microsoft now stand as the second and third companies in history to cross the $4 trillion mark.

Big Tech’s Trillion-Dollar Race: Apple and Microsoft Join the $4 Trillion Club as Nvidia Stays on Top

Microsoft’s stock climbed nearly 3% after the company finalized a 27% stake in OpenAI’s for-profit business — solidifying a partnership that has defined the current AI boom, CNBC reported. The software giant has been backing the ChatGPT maker since 2019, and its growing stake signals just how intertwined Microsoft’s future is with the success of AI-driven products.

Apple, meanwhile, has been on an impressive streak. Shares have climbed for 11 of the past 12 trading days as the new iPhone 17 lineup, released in September, appears to be selling better than its predecessors. Investors are betting that strong demand for the new models could give Apple’s quarterly results a major lift.

“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. He raised his price target to $290 per share and maintained a buy rating on the stock.

The company has also managed to sidestep the worst effects of potential tariffs under the Trump administration. By shifting much of its U.S.-bound production to India and Vietnam, Apple has diversified its supply chain and strengthened its standing with U.S. policymakers. “Announcement of an increased pace of domestic investment in combination with a rapid shift in product manufacturing for the US market outside of China (India, Vietnam) has improved Apple’s positioning in the tariff landscape,” Chatterjee added.

Apple reports its fiscal fourth-quarter earnings on Thursday, while Microsoft is set to report on Wednesday. With both companies now firmly in the $4 trillion club, investors are watching closely to see if either can close the gap with Nvidia, the new heavyweight of the AI economy.