Microsoft has surged ahead of Apple to claim the title of the world’s most valuable company after Apple’s shares faced a lacklustre start to 2024, marked by concerns over weakening product demand.
Due to its early strides in generative artificial intelligence, Microsoft’s rise propelled its market valuation to $2.875 trillion, outpacing Apple for the first time since 2021.
The latest data shows Microsoft’s shares enjoying a 1.6% increase, reflecting investors’ enthusiasm for the company’s advancements in generative AI.
On the other hand, Apple experienced a 0.9% decline, resulting in a market capitalisation of $2.871 trillion. Analysts note that Microsoft’s faster growth and substantial gains from the generative AI revolution played a pivotal role in this historic shift.
Apple’s challenges include rating downgrades, raising concerns about the iPhone’s sales outlook, particularly in the crucial Chinese market. Redburn Atlantic noted that China’s dynamics, heightened Sino-US tensions and competition from Huawei pose potential obstacles to Apple’s performance.
Furthermore, scrutiny from regulators on Apple’s services business, particularly the Google search engine deal on iOS, adds pressure. Despite ending 2023 with a 48% gain, Apple’s recent hurdles have contributed to Microsoft’s ascendancy.
