On Thursday, Microsoft reclaimed its title as the world’s most valuable public company, surpassing Apple. The shift in rankings occurred as Microsoft’s shares rose by 1% in early trading, elevating its market value to $2.87 trillion, while Apple’s shares experienced a nearly 1% decline.
Microsoft’s AI-Driven Triumph
Microsoft’s ascent to the top was fueled by the flourishing artificial intelligence (AI) market, spurred by the widespread popularity of the ChatGPT chatbot developed by OpenAI, a project in which Microsoft heavily invested. The continuous growth of this service, initiated in late 2022, positioned Microsoft as a major beneficiary.
Apple’s Challenges and Microsoft’s Focus on AI Integration
In contrast, Apple faced challenges in navigating the AI surge and grappling with concerns about diminishing iPhone sales, particularly in China. Microsoft’s strategic focus on incorporating AI technology into its products, exemplified by the success of the ChatGPT chatbot, underscored the divergent paths of these tech giants.
Historical Apple-Microsoft Rivalry and Current Market Dynamics
The historic rivalry between Apple and Microsoft, dating back to the 1980s, witnessed Apple’s accusations against Microsoft for alleged MacOS elements’ appropriation. Despite a high-profile copyright lawsuit loss in the 1990s, Apple’s success with the iPhone eventually propelled it to surpass Microsoft in market value in 2010. However, Microsoft’s intermittent lead during the COVID-19 pandemic showcased the dynamic competition between the two.
In the current landscape, Apple anticipates a resurgence with the launch of its Vision Pro mixed reality headset, aiming to usher in a new era of “spatial computing” with innovative capabilities, notes NIXSolutions.
As the AI market surges, NVIDIA, a prominent AI accelerator manufacturer, experienced a significant boost in its shares. Despite this, its market value remains $250 billion below Amazon’s capitalization, which stands at approximately $1.6 trillion.