CUPERTINO, California — Apple became the first company in history to close above a $5 trillion market capitalisation on Thursday, extending a rally fuelled by strong iPhone 18 sales and investor optimism over its on-device AI strategy. The milestone followed the stock's brush with the threshold earlier this week.

The achievement marked another step in a valuation race among technology giants that has already seen Nvidia and Microsoft flirt with the same figure. Apple last crossed $4 trillion in 2025, and analysts at Morgan Stanley and Wedbush had flagged $5 trillion as a near-term target driven by services growth and hardware upgrades.

Apple's shares have climbed despite broader market unease, with Dow Jones futures pressured this week as Brent crude topped $100 a barrel and traders weighed the prospect of renewed Federal Reserve tightening. The company's cash-rich balance sheet and aggressive buyback programme have insulated it from some macroeconomic jitters.

The valuation has reignited debate over whether Apple's rich earnings multiple is sustainable. Some portfolio managers cited by financial outlets warned of profit-taking, arguing the stock's price reflects optimistic assumptions about Apple Intelligence adoption and future foldable and wearable product lines.

Dan Ives, managing director at Wedbush Securities, dismissed concerns about overvaluation. "Five trillion is a psychological marker, not a ceiling," he said. "The install base and services engine are doing the heavy lifting." Ives has argued Apple's AI-enabled upgrade cycle justifies the premium valuation.