Why Apple Will Be First to $4 Trillion Market Cap

The competition to be the first company to achieve a $4 trillion market cap is heating up, according to Dan Ives, managing director and senior equity analyst at Wedbush Securities. Major players in this race include Apple (AAPL), Nvidia (NVDA), and Microsoft (MSFT), all of which are moving closer to surpassing the $3 trillion milestone.

Ives believes that Apple is uniquely positioned to lead this race, primarily due to what he calls an 'AI-driven supercycle' kick-started by the launch of the iPhone 16. This surge is expected to begin in the December quarter as Apple integrates more artificial intelligence capabilities into its devices. He predicts that around 20% of the global population will engage with AI through Apple products, marking a significant shift in technology adoption.

According to Ives, the upcoming months could be pivotal for Apple. He predicts a historic year for iPhone sales, estimating units to exceed 240 million. This projected growth is fueled by a considerable number of existing iPhone users—300 million—who have not upgraded their devices in over four years, representing an unprecedented opportunity for upgrades.

Ives notes that while Apple is on track for significant growth, he sees the pivotal $4 trillion milestone occurring in 2025. He mentions that it could be considered a multi-year supercycle as market conditions continue to evolve. Following Apple, he anticipates that Nvidia, often termed the 'Godfather of AI', will be next in line, with Microsoft following shortly thereafter.

As the technology market continues to expand and evolve, keeping an eye on these three companies and their advancements will be crucial for understanding future market trends.

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