Microsoft surpassed Apple to become the world’s most valuable company on Thursday, a feat not achieved since 2021, according to recent market trends.
Apple’s shares had a sluggish start to the year, leading to concerns about demand and providing an opportunity for Microsoft to seize the lead.
Microsoft’s shares have experienced a significant increase recently, partly due to the company’s early investment in generative Artificial Intelligence (AI), especially its collaboration with ChatGPT creator, OpenAI.
The tech behemoth’s stock ended 0.5 percent higher, resulting in a market valuation of $2.859 trillion. During the session, Microsoft momentarily achieved a valuation of $2.903 trillion.
On the other hand, Apple saw a 0.3 percent drop in its shares, leading to a market capitalization of $2.886 trillion.
Historically, Microsoft and Apple have been rivals for the top position in terms of market valuation.
D.A. Davidson analyst Gil Luria stated, “Microsoft overtaking Apple was inevitable given Microsoft’s faster growth and greater benefits from the generative AI revolution.”
Microsoft’s strategic integration of OpenAI’s technology into its productivity software suite has led to a revival in its cloud-computing business in the July-September quarter.
While Microsoft excels in technological innovation, Apple has been dealing with issues related to declining demand, especially for its main product, the iPhone.
Factors such as China’s slow economic recovery and increased competition from Huawei have added to Apple’s difficulties in maintaining its market share.
The interplay between Microsoft and Apple mirrors the changing landscape of the tech industry, with both companies strategically positioning themselves in crucial areas like artificial intelligence and cloud computing.
As they navigate these changes, investors and industry watchers will continue to track their performance and market positioning in the upcoming months.
Additional Source; Reuters