(Reuters) – Apple Inc’s (AAPL.O) market capitalization on Friday breached the $3 trillion mark for the first time since January last year, as investors bet on the iPhone maker’s ability to grow revenue even as it explores new markets such as virtual reality.
Shares of Apple, which is also the world’s most valuable- listed company, were up 1.6% at $192.6, after touching a record high of $193.15 during the day.
They have jumped nearly 46% this year and, at the current price, the company’s market value stands at around $3.02 trillion.
Apple’s market value briefly peaked at above $3 trillion in intra-day trading on Jan. 3, 2022, before closing the session just below that mark.
The company’s less-than-expected fall in sales in its most recent quarterly report has highlighted the tech giant’s resiliency in an uncertain economy, making it an investor favorite.
“Apple is navigating the macro slowdown and inflationary pressure on consumer spending by consistently gaining share from Android phones,” Citigroup analyst Atif Malik said.
The gains in Apple shares come as technology stocks rebound on bets that the Federal Reserve may be slowing its pace of interest rate hikes as well as on the buzz around artificial intelligence.
Apple’s 12-month forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 29.49, well above the sector median of 13.14, according to Refinitiv data.
Microsoft’s P/E ratio is 30.59, while that of Amazon and Alphabet is 61.47 and 20.54, respectively.
Currently, four other U.S. companies have a valuation of more than $1 trillion – Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O), Nvidia Corp (NVDA.O) and Microsoft Corp (MSFT.O), which is a close second with a market value of $2.49 trillion.
Shares of Tesla (TSLA.O) and Meta Platforms (META.O) have more than doubled this year, while a near 180% gain in shares of Nvidia has catapulted the chipmaker into the trillion-dollar club.