Get 40% Off
🚨 Markets Are Down. Unlock Undervalued StocksFind Stocks Now

Microsoft topples Apple to become global market cap leader

Published 01/15/2024, 03:30 AM
Updated 01/15/2024, 03:35 AM
© Reuters. FILE PHOTO: Microsoft logo is seen on the smartphone in front of displayed Apple logo in this illustration taken, July 26, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Microsoft (NASDAQ:MSFT) has eclipsed Apple (NASDAQ:AAPL) to become the world's largest company by market capitalization, driven by its deep focus on generative artificial intelligence (AI), a sector that has garnered increasing investor favour.

The tech giant, which along with Nvidia (NASDAQ:NVDA) and Amazon (NASDAQ:AMZN) placed a significant emphasis on AI, has experienced substantial market surges over the past year. Notably, Microsoft's market value has risen by over $1 trillion.

Analysts are drawing parallels between this shift and the early 2000s, when technology and internet companies began to replace consumer and financial firms at the forefront of the market's highest echelons.

According to LSEG data, Microsoft's market cap stood at $2.887 trillion, its highest ever, while Apple's market cap was $2.875 trillion as of Friday's close after peaking at $3.081 trillion on Dec. 14.

Microsoft has incorporated OpenAI's technology across its suite of productivity software, a move that helped spark a rebound in its cloud-computing business in the July-September quarter. Its AI lead has also created an opportunity to challenge Google's dominance of web search.

Apple, on the other hand, is facing challenges with waning demand, including for its flagship product, the iPhone.

The company is particularly struggling in China, a key market where economic recovery from the COVID-19 pandemic has been sluggish and competition from a resurgent Huawei is intensifying, impacting its market share.

Other AI-focused tech players such as Nvidia, Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOGL), also witnessed a big jump in their market cap in the past year.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Humm
Looks like this title is changing back and forth. 2 of the best companies to own
Watch the Apple fanboys buy this one and push tech further up for no reason
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.