Microsoft Market Cap grows to Historic $3 Trillion Market Cap briefly beating Apple

On Wednesday, Microsoft, the tech giant, briefly crossed the unprecedented $3 trillion market valuation threshold, marking a historic moment in the company’s history.

The stock experienced a surge of up to 1.7%, reaching $405.63, pushing its market capitalization to just over $3 trillion during trading hours. However, by the close of the day, it settled with a 0.9% increase, achieving a record valuation of $2.99 trillion.

During this fleeting moment, Microsoft surpassed Apple Inc., which had previously achieved the $3 trillion milestone last year.

However, Microsoft subsequently dropped below Apple in market value, with Apple closing at a market valuation of $3.01 trillion.

Throughout the year, Microsoft and Apple shares have competed for the title of the most capitalized stock on Wall Street. Earlier in January, Microsoft briefly claimed the top spot, but the two tech giants continue to jockey for position.

Microsoft’s investment in OpenAI, the creator of ChatGPT, positions the company as a leader in the race for market dominance in generative artificial intelligence (AI).

This competition includes other tech heavyweights like Google owner Alphabet, Amazon.com, Oracle, and Meta Platforms, the owner of Facebook.

Leveraging OpenAI’s technology, Microsoft has introduced updated versions of its flagship productivity software and Bing search engine. These advancements enhance Microsoft’s competitiveness against Google’s dominant search offering.

On the other hand, Apple is grappling with slowing demand for its iPhones, particularly in China. Apple has resorted to offering rare discounts to boost sales amid fierce competition from local rivals such as Huawei Technologies.

Analysts attribute Microsoft’s success to “AI optimism,” noting that the company has a straightforward AI story, while Apple faces concerns about iPhone sales growth rates and penetration.

Microsoft’s shares gained almost 57% in 2023, with a 7% increase in the current year. Apple’s stock rose 48% last year, with a modest 1% increase year-to-date.

Source: Business Today