Apple Joins Nvidia in the $5 Trillion Valuation Club
Apple closed above a $5 trillion market valuation for the first time, capping Tim Cook’s 15-year tenure and setting a high bar for incoming CEO John Ternus, as the company faces growing pressure to strengthen its AI capabilities and sustain growth.
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Apple AAPL 0.50%increase; became the second company to close above the $5 trillion mark on Wednesday, capping the Tim Cook era, and posing an implicit challenge to new Chief Executive John Ternus.
The iPhone-maker’s shares closed at a record, just enough to push the company’s market capitalization into territory that only chip colossus Nvidia occupies. Apple’s market value has surpassed $5 trillion six times previously during intraday trading, but it had never closed above that level, which it squeaked past on Wednesday, ending the day at $5.005 trillion according to Dow Jones Market Data.
Cook’s act will be tough to follow. During his 15-year tenure as CEO, which ended Aug. 31, Apple’s market capitalization multiplied by a factor of 13. He nearly quadrupled the number of iPhones sold annually. He grew its highly profitable services business from $10 billion annually to more than $100 billion. He launched the Apple Watch and AirPods, which together generate more than $30 billion a year. He poured Apple’s cash into more than $1 trillion worth of share buybacks and dividends.
Today, Apple shares trade at a premium compared with the overall S&P 500 even though the company’s revenue growth rate is slower than the index’s average. That is because the company’s shares are viewed as safe, and its business predictable, say analysts.
A key to Apple’s success under Cook is how it has limited capital spending, juicing the company’s returns for investors and greatly reducing the risks of its business. That has never been more apparent than during the AI build-out, when big tech rivals have rushed to spend gargantuan sums on data centers while Apple has focused on its core businesses making devices and selling high-margin services for them.
Apple investors are so confident in its business that they have driven up its shares despite big cost increases that threaten profit margins. The cost of memory and storage chips inside iPhones, Macs and iPads has skyrocketed as demand for those chips from data centers has led to shortages. Apple has responded by raising prices across its device lineup, including for older model iPhones that would typically get a price cut.
In theory, such a move could hurt Apple since iPhone buyers might wait longer to upgrade their devices. Yet since the first wave of price increases Apple shares have jumped 25%.
In part, that is because investors think Apple device buyers will pay the higher prices, enabling Apple to generate as much or more in total profits even if margins are down, said Bank of America analyst Wamsi Mohan. He added that Apple’s new foldable iPhone Duo is likely to be popular and that the new Siri AI will prompt iPhone upgrades.
AI has long been viewed as Apple’s Achilles’ heel. The company failed in its efforts to build its own frontier model, and it also allowed its Siri assistant to fall far behind rivals. ChatGPT revolutionized what smartphone users expect from chatbots.
Apple hopes to turn a corner with the new Siri AI. Built with Google’s help, Apple’s redesigned chatbot was released this fall. It still lags behind rival AI systems in key respects, though it has the advantage of being built directly into the device that many people already use, their iPhone. Apple also has access to more personal data, which could theoretically be used for compelling AI features, though new AI agents show the technology is advancing faster than Apple’s ability to keep up.
Tech rivals know how important it is to control the devices that people use to deliver their services. Perhaps most threatening to Apple, OpenAI is planning a family of AI-powered devices. It has poached hundreds of Apple employees to drive its device strategy. Apple responded in July by suing OpenAI, alleging it stole Apple trade secrets.
OpenAI has said it is “not aware of any evidence that this complaint has merit” and alleged in a new legal filing Wednesday that Apple poached one of its own employees who took confidential files with him. Apple said in response that it had found no evidence supporting the new allegation.
AI could be the battleground where Ternus makes his mark, either ushering in a new era of innovation and growth for Apple or finally losing its status as the company that has defined how people interact with computers.
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A new study models a potential $80.6 billion lift in Australian GDP after a decade, as national testing shows a decline in Year 10 digital literacy.
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Australia trails Singapore and Malta in a new Commonwealth index, while national testing shows fewer than four in 10 Year 10 students meet the standard for digital literacy.
Australia has ranked third among 56 Commonwealth countries for youth AI readiness, with researchers estimating that artificial intelligence could lift the level of Australian GDP by $80.6 billion after a decade under their middle scenario.
The Ayre Think Tank released the index at the Commonwealth Heads of Government Meeting in Antigua and Barbuda. Australia scored 71 out of 100, behind Singapore on 77.6 and Malta on 75. The United Kingdom followed closely on 70.8, with Canada fifth on 70.2. Only 15 countries reached the study’s benchmark of 53.
What the $80.6 billion figure measures
The researchers applied International Monetary Fund estimates for broad groups of economies to Australia’s 2025 GDP. The resulting scenarios put the potential lift in Australian GDP after 10 years at between $40.9 billion and $120.3 billion, with $80.6 billion representing the midpoint.
The figures describe how much larger the economy could be at the end of the period under each scenario. They represent a change in the level of GDP in year 10.
Digital literacy falls as schools roll out AI tools
Australia scored 8.7 out of 10 for access to technology and 7.5 for digital, data, media and AI capability. Separate national testing found that 37 per cent of Year 10 students met the proficient standard for information and communications technology literacy in 2025, down from 46 per cent in 2022. About one in 10 students reported receiving substantial teaching on AI-related tasks. National assessment results
The report points to two state initiatives aimed at building those skills. Queensland began rolling out an AI education platform in state schools in 2026, while Victoria introduced free specialist training for workers looking to develop AI skills or move into related roles.
The index draws on 1,128 sources and examines the conditions facing people aged 15 to 29, including access to technology, education and pathways into work. Australia had usable data for 76 of the 102 indicators used in the rankings. The researchers found too little comparable evidence to score an eighth area covering critical judgement and people’s ability to exercise control over AI systems.
Professor C. Justin Robinson, campus principal of the University of the West Indies’ Five Islands Campus, said young people should be equipped to question and improve AI tools and supported in building alternatives suited to their needs.
The report calls for affordable access to technology, more practical education and stronger links between training, employment and entrepreneurship. It also urges governments and educators to support AI tools suited to local languages and give young people ways to challenge automated decisions.
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