Apple has become only the second company ever to reach a $5tn (£3.78tn) market valuation, benefiting from a broader investor exodus from artificial intelligence and semiconductor stocks. The milestone reflects a shift in market sentiment: while rivals pour vast sums into AI infrastructure, Apple's more cautious approach and reliance on Google's technology for services like Siri have shielded it from the heavy costs now worrying investors elsewhere in big tech.

Apple's shares hit a session high of $342.89 on Tuesday before settling 0.9% up at $339.91, just above the $5tn threshold. It overtook Nvidia as the world's most valuable company earlier this month; Nvidia had been the first firm to pass $5tn, in October. The rally coincides with a sharp sell-off in AI and chip stocks worldwide, driven by fears over heavy borrowing to fund datacentres and growing competition from China, including a 466% share surge for chipmaker CXMT on its Shanghai debut. US chip firms including Intel and AMD fell more than 4%, the Nasdaq 100 dropped nearly 2%, and South Korea's Kospi index sank 11.5% to a three-month low. Analysts also credited Apple's decision to hold iPhone prices steady, unlike recent MacBook and iPad increases, with boosting demand.