July 3 (Reuters) – Apple Inc ( AAPL.O ) became the world’s first company to hit $3 trillion in market value, adding to hopes for a modest approach to expansion into new markets and rising interest rates. At the Federal Reserve.
The iPhone maker’s growth has been among the most eye-catching in a month that has seen investor interest in the potential of artificial intelligence, with stock buyers particularly favoring companies with strong balance sheets and cash flows.
Apple’s quarterly earnings and profits beat analysts’ estimates in May, and its record share buybacks have bolstered its reputation as a safe investment amid global economic uncertainty.
Similarly, electric car maker Tesla Inc ( TSLA.O ) saw a 28% jump in market capitalization in June.
Tesla’s push has been fueled by deals between rivals Ford Motors ( FN ) and General Motors Co ( GM.N ) to acquire Tesla’s charging network, which could establish Tesla chargers as the industry standard.
Elsewhere, Nvidia Corp ( NVDA.O ) joined the $1 trillion valuation club last month, as the market cap rose 11.8%, as investors bet on its potential to benefit greatly from advances in artificial intelligence.
In May, the company’s shares rose following an earnings forecast that beat Wall Street estimates by more than 50 percent.
Apple and Microsoft Corp ( MSFT.O ) led the list of the top 20 global companies by market capitalization at the end of June.
By contrast, Alphabet Inc’s ( GOOGL.O ) market value fell 2.3 percent to $1.53 trillion last month, under increasing competition from Microsoft Bing, which has grown in size since the merger of the artificial intelligence powerhouse behind ChatGPT.
Reporting by Pathuraja Murugabopati and Gaurav Dogra in Bengaluru; Editing by David Holmes
Our Standards: The Thomson Reuters Trust Principles.