Apple Hits $5 Trillion Market Cap: Why It’s Falling Behind in AI Race?

Apple (AAPL) briefly surpassed the $5 trillion market cap milestone on July 28, 2026, becoming the second publicly traded company in history to achieve this feat after Microsoft. The tech giant reached the mark less than a year after hitting $4 trillion in October 2025. Apple shares are up 24% year-to-date and nearly 60% over the past 12 months, driven by strong iPhone sales. However, investors have criticized Apple for falling behind in the AI race. While the company launched its Apple Intelligence platform in 2024, it delayed key features, including an upgraded version of Siri. This led to executive changes and a deal with Google (GOOG, GOOGL) to use its Gemini AI models for the voice assistant. Apple now plans to launch the revamped Siri as a beta alongside its first foldable iPhone and the iPhone 18 lineup later this fall. Despite this, Apple has not seen the same explosive growth as its Big Tech peers since OpenAI (OPAI.PVT) released ChatGPT in November 2022. Nvidia (NVDA) has surged 1,125%, Meta (META) 386%, and Google 226%, while Apple has gained 130%. However, Apple has avoided steep sell-offs faced by AI-focused rivals like Microsoft (MSFT), which has dropped 28% since hitting an all-time high of $542.07 in October 2025. AI has, however, posed another challenge for Apple, as the company, like much of the consumer tech industry, is grappling with an AI-induced global memory and storage shortage. This has forced Apple to raise prices on Mac and iPad products, though iPhone prices remain unchanged for now. The upcoming smartphone releases could see price adjustments. This comes as Apple CEO Tim Cook prepares to step down to John Ternus on September 1, marking one of the biggest leadership transitions in the company's history.

Apple's AI strategy, involving partnerships with Google, investments in Siri's upgrade, and the introduction of foldable iPhones, suggests a multi-faceted approach. However, the market expects more aggressive AI advancements from Apple. This shift could significantly impact the company's future growth potential.