Microsoft has become the world’s most valuable company, beating Apple, thanks to its progress in a technology called generative artificial intelligence. Microsoft’s overall worth reached $2.875 trillion, surpassing Apple for the first time since 2021.
This happened because Microsoft’s shares went up by 1.6%, showing that investors are excited about the company’s work in generative AI. In contrast, Apple’s value slightly decreased to $2.871 trillion.
Experts say that Microsoft’s faster growth and success in the generative AI field are the main reasons for this big change. Analyst Gil Luria pointed out that Microsoft was expected to do well, considering its speedy growth and strong position in the generative AI revolution.
On the other hand, Apple has faced some challenges recently, like a drop in its stock value, concerns about iPhone sales, and scrutiny from regulators.
Microsoft’s positive outlook, especially due to its work in generative AI, has made it a favorite on Wall Street. Microsoft working with OpenAI on tools like ChatGPT has also contributed to its success. Unlike Apple, Microsoft has received no “sell” ratings from analysts, and almost 90% of them suggest buying Microsoft’s stock. This shows a different situation for Apple, which has two “sell” ratings, and only two-thirds of analysts recommend its stock.
Both Microsoft and Apple are considered expensive compared to their earnings, indicating a shift in the market where Microsoft’s success could change the perception of which tech company is leading.
