Microsoft replaces Apple and becomes the world’s largest company by market capitalization
Driven by a deep focus on generative artificial intelligence (AI), Microsoft is replacing Apple as the world’s largest company by market capitalization. It is a sector that is gaining more and more favor from investors, and Microsoft has taken advantage of that opportunity and is now “rubbing its hands”.
This technological giant, together with the companies Nvidia and Amazon, places a significant emphasis on AI, which is why it has experienced significant growth over the past year. The growth of the market value of this company jumps to the fore as the company “grew” by a trillion dollars (US trillion), reports Reuters.
Analysts draw parallels between this shift and the early 2000s, when technology and Internet companies began to replace consumer and financial firms at the top of the market echelons.
Microsoft’s market capitalization is $2.887 trillion as of today, their highest level ever, while Apple’s market capitalization is $2.875 trillion, after reaching its peak of $3.081 trillion on December 14 last year.
Shutterstock / Camilo ConchaMicrosoft implemented the company’s OpenAI technology into its suite of productivity software, a move that helped turn around its cloud computing business during the July-September period. Its leadership in AI also created an opportunity to challenge Google’s dominance in web search.
Additionally, last week, Microsoft briefly dethroned Apple as the world’s most valuable company, as its shares rose 0.5 percent in one trading day.
On the other hand, Apple is facing challenges related to declining demand, including for its flagship product, the iPhone.
This company especially has problems in China, a key market where the economic recovery from the consequences of the COVID-19 pandemic has been slow, and the competition in the form of the increasingly strong Huawei company is intense, which certainly affects the market share of the Cupertino company. Other AI-focused tech players such as Nvidia, Meta Platforms and Google have also seen a significant jump in their market capitalization over the past year, economic charts show.