Microsoft has overtaken Apple to regain its position as the world’s most valuable public company, with a valuation of $2.89 trillion compared to Apple’s $2.87 trillion.
Closing the Gap
Over the past year, Microsoft’s shares have experienced an impressive rally of 62.9%, outperforming Apple’s gain of 39.4%. In 2024, Microsoft shares have also shown strength, with a 3.3% increase, while Apple has experienced a 3.4% decline.
Briefly Surpassing Apple
Earlier this week, Microsoft briefly surpassed Apple in market capitalization on an intraday basis before settling back down. Up until then, Apple had held the title of the stock market’s most valued company for over 500 days. The last time Microsoft held the top spot on a closing basis was in November 2021.
The Boost from Artificial Intelligence
Microsoft’s success can be attributed in part to the burgeoning artificial intelligence software boom. The company has been actively implementing its Copilot AI software across its portfolio, while its Azure cloud business has benefited from the increasing demand for AI workloads. Additionally, Microsoft holds the largest investment in OpenAI, a leading player in the AI software industry.
In contrast, Apple has faced challenges with four consecutive quarters of declining year-over-year revenue. Lackluster demand for phones, Macs, and other hardware has contributed to this disappointing performance.
As Microsoft continues to capitalize on the growing AI market, it remains on top, surpassing Apple as the most valuable public company. While both companies navigate their respective challenges, Microsoft’s strategic investments and focus on AI present a promising future.