Apple Hits $5 Trillion Market Cap Ahead of CEO Handover

Apple shares climbed to an intraday high of $342.89 on Tuesday, July 28, pushing the company briefly past the $5 trillion market capitalization mark. Apple is now only the second public company to reach this level, following Nvidia. The rally happens just two days before Apple reports its third quarter earnings on Thursday, which marks the final earnings call for Chief Executive Officer Tim Cook. John Ternus is scheduled to take over as chief executive on September 1.

Apple stock has gained about 25 percent this year, while Nvidia has seen a 6 percent gain over the same period. Unlike other major technology companies that are spending heavily on artificial intelligence infrastructure, Apple has kept its budget lower. The company relies on Google cloud technology to power its updated Siri assistant rather than building an in house model. Strong iPhone sales and traditional hardware demand have fueled the latest growth rather than artificial intelligence spending.

Alongside the market milestone, Apple launched a new leasing program called Upgrade in partnership with Klarna. This plan allows United States customers to lease an iPhone for $17.99 a month instead of purchasing the device outright. Apple also raised prices on MacBooks and iPads recently due to increasing memory and storage costs.

Traders are now waiting for Thursday's earnings report to see if traditional hardware sales can justify the massive valuation. The financial update will also show how markets react to the upcoming leadership transition at one of the world's most valuable technology firms.