Apple hit a market cap of $1 trillion on Thursday, as the iPhone maker became the first publicly traded U.S. company to reach the valuation.

The stock rose nearly 3 percent after a strong fiscal third-quarter earnings report earlier this week, briefly hitting a session high of $207.05 in midday trading before falling back below $207.

Based on a recently adjusted outstanding share count of 4,829,926,000 shares, a stock price of $207.05 nudged Apple over the finish line in the race to $1 trillion. Investors had previously been looking for a share price of $203.45, but the company's hefty stock buybacks moved the threshold higher.

I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades,

GBH Insights analyst Dan Ives told CNBC after the historic market move.

This is not the end, that they hit $1 trillion. I view this as just kind of speaking to a new stage of growth and profitability.

Ives credited the company's growing software and services revenuewith driving the valuation. The catch-all category — which includes the App Store, AppleCare, Apple Pay, iTunes and cloud services — posted record revenue of $9.55 billion for the June quarter.

It just speaks to the vision that [co-founder Steve Jobs] and now [CEO Tim Cook] have had in making sure Apple isn't just a hardware company,

Ives said.

Amazon had also been approaching the threshold, surpassing $900 billion in market value in July. Apple had quite the head start, though, hitting $900 billion in November.

Many on Wall Street noted earlier this week that Apple was firmly on the path to $1 trillion. Aswath Damodaran, professor of finance at New York University's Stern School of Business and the so-called dean of valuation, said the stock is still cheap even at $1 trillion.