Apple hits $5 trillion market cap, raising questions over lofty valuation
Apple’s shares rose about 3% on July 28, pushing its market value past $5 trillion, a level previously reached only by Nvidia.
On July 28 Apple’s stock climbed roughly 3%, giving the company a market capitalization of $5 trillion - a milestone previously achieved only by Nvidia. The rally was sparked by a Bloomberg story that Apple intends to launch a Siri-driven home hub, a refreshed Apple TV and a new HomePod mini before the end of the year. Although Wall Street has softened its criticism of Apple’s restrained AI investments, the company’s price-to-earnings ratio surged to about 41, dwarfing the ratios of Nvidia (30.2), Amazon (27.7), Meta (21.6) and Alphabet (16.8).
Historically Apple’s PE hovered near 16-20, and even after a post-COVID rise it stayed under 30 until mid-2025, when earnings began to grow faster than the share price. With buybacks now accounting for a smaller earnings boost, the stock’s steep valuation creates two challenges: limited return from repurchases and the need for a new growth catalyst to keep the price justified.
Why it matters
Apple’s $5 trillion valuation tests investors’ tolerance for high multiples and signals pressure for new growth sources.
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