Microsoft has overtaken Apple to become the most valued public company with a market cap of $2.89 trillion. Apple closed at $2.87 trillion at the end of Friday’s trading session.
Microsoft has gained around $1 trillion in valuation over the past year. This dramatic surge is attributed to the tech giant’s shift to AI technologies.
Apple stocks surged 48% in the previous year. However, its shares have been down 3% so far in 2024. Microsoft saw a 57% increase in market cap last year, along with a 3% surge in 2024.
Experts believe that the companies that will lead the next decade will be the ones that are proactive in embracing AI tech. And Satya Nadella’s bet on AI has started to show results for the company. Microsoft has invested $10 billion in OpenAI — the AI giant behind the revolutionary ChatGPT.
Microsoft’s AI Shift
Apart from its close ties to OpenAI, Microsoft has launched its Copilot assistant, which has proven to be a game-changer for the company. It is the ultimate personal assistant for the Windows system.
Microsoft has even integrated it with Word, Outlook, Excel, Teams, PowerPoint, and other Microsoft suite of apps to make redundant tasks easier. Users can also download the Copilot app on their Android devices.
The tech giant has even added a Copilot button in its Windows 11 keyboard — its first major upgrade in 30 years.
Microsoft has also introduced Azure AI — a platform that allows developers to build market-ready applications using AI tools with customizable pre-built APIs.
Apple’s Struggle
Apple has been searching for its “next big thing” for a few years now. It has also been struggling in China — its 5th largest market. China has already banned the use of iPhones by government-backed companies and agencies in September 2023.
Apple’s market cap fell by 6.9% in two days following this news. Moreover, there has been a push for domestic brands like Xiaomi and Huawei, which has made the Chinese market a tough geographical spot for Apple.
There was also a recent patent-infringement controversy, where the tech giant was accused of stealing Masimo’s technology behind the blood oxygen sensor. Although Apple is allowed to currently sell its smartwatches in the US, the legal battle can land Apple in another trouble.
Plus, unlike Microsoft, Apple hasn’t embraced AI technologies yet.
AI will carry on being a dominant theme in 2024 — we’re kind of only scratching the surface of it at the moment.Kathleen Brooks, founder of Minerva Analysis
Similarly, several experts and tech companies are banking on AI to dominate the market. As seen by market valuations, organizations that can adapt quickly to these changes will lead the next generation of technologies.
Apple needs to buckle up and charge at a rate of knots towards this AI transformation, given that it is currently lagging behind competitors like Microsoft, Google, and OpenAI.
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