Apple (APPLE, AAPL) rose more than 7% yesterday to a record high of $207.15 per share, a day after the company announced long-awaited artificial intelligence (AI) news at its annual developer conference on Monday.
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ToggleApple overtakes Huida and regains second place in market capitalization
Analysts at Morgan Stanley said Apple's artificial intelligence capabilities make the company "the most differentiated consumer digital agent." Additionally, these features will prompt consumers to upgrade their iPhones, which should "speed up device replacement cycles." Morgan Stanley updated its target price for Apple to $216, while bulls are targeting $270.
Yesterday's sharp rise in Apple's market capitalization also brought its market capitalization to 3.176 trillion, regaining the second place in market capitalization. It is only 40 billion US dollars behind the first place Microsoft, while NVIDIA is 202 billion US dollars behind. Hot on his heels. The competition for the top three is very fierce!
If Apple fails to retain its No. 2 spot, it will trigger $11 billion in rebalancing selling pressure
Bloomberg ETF analyst James Seyffart wrote that the technology ETF $XLK with an asset management scale of US$67 billion will be rebalanced later this month. According to its fund holding regulations, if Apple’s market value continues to be lower than Huida, XLK will Forced to sell Apple (AAPL) worth about $11 billion, and forced to buy NVDA (NVDA) worth nearly $10 billion.
Fortunately, Apple rebounded sharply yesterday. If it can maintain its second position before Friday's close, it can avoid the dilemma of rebalancing selling.
(Understand what rebalancing is: The art of rebalancing, Ark Invest continues to sell Coinbase and buy Block )
