Microsoft has overtaken Apple to become the world’s largest company by market capitalization, according to Reuters. This result is due to Microsoft’s focus on generative artificial intelligence (AI), a sector that has gained increasing favor among investors.
The tech giant, along with other major players such as Nvidia and Amazon, has paid significant attention to the advancement of AI technologies, leading to significant increases in the market over the past year. Microsoft’s market value has increased by more than $1 trillion. Analyzing this shift, experts draw comparisons to the early 2000s, when technology and Internet companies began to replace financial and consumer firms.
According to data from the London Stock Exchange Group (LSEG), Microsoft’s market capitalization hit a record high of $2.887 trillion, while Apple’s market capitalization was $2.875 trillion on Friday, following a high of $3.081 trillion. dollars on December 14, 2023.
The integration of OpenAI technology into its suite of productivity software played a crucial role in reviving its cloud computing business in the July-September quarter. Its position as a leader in AI also opens up opportunities to challenge Google’s dominance.
Instead, Apple faces challenges such as falling demand, particularly for its flagship product, the iPhone. The company is struggling in China, a crucial market where the economic recovery from the COVID-19 pandemic is slow and competition from Huawei is making its presence felt, affecting its market share.
Other AI-focused technology players, including Nvidia, Meta Platforms and Alphabet, have also experienced significant increases in their market capitalization over the past year.
