Saudi Aramco has overtaken Apple Inc (NASDAQ:AAPL) for the top spot as the most valued company, as tech stocks have taken a dive and oil companies have propsered.
Aramco, which is listed on the Saudi stock exchange Tadawul, closed nearly 1% lower on Wednesday at 45.5 Saudi Riyals (US$12.13) a share, with a market capitalisation of 9.1 trillion riyals (US$2.43 trillion), while Apple's stock price dropped more than 5% to US$146.5 a share, with a market value of US$2.37 trillion.
Despite Apple improving profitability during the first quarter, the iPhone manufacturer's market value dropped this year.
The US technology giant has further warned China's COVID-19 lockdown and supply chain problems could negatively affect the its second quarter 2022 results.
Since the start of the year, Aramco's share price has increased by almost 30%, while Apple's stock price has slumped by more than 15%.
A sustained rise in oil prices is expected to further bolster the Saudi Arabian giant's earnings to record levels when it announces its first-quarter results soon.
After last year's US$110bn net profit, which was double that of 2020, Saudi Arabia's state-controlled giant pledged in March to ramp up capital expenditure to between US$40-$50bn in 2022.
The company's IPO raised US$29.4bn three years ago, and now Crown Prince Mohammed bin Salman has announced plans to sell more Aramco stock.
This February, Saudi Arabia's sovereign wealth fund received US$80bn in shares worth 4% of the company.
Aramco generated US$107.5bn in free cash flow last year, compared with US$49.1bn in 2020.