Microsoft is steadily closing in on Apple as the most valuable US company, with only one competitor left in the race. At $2.73 trillion, Microsoft’s market value is slightly trailing Apple’s $2.83 trillion capitalization.
Market Dynamics:
Since November 17, 2021, Apple hasn’t trailed Microsoft, but the current gap hasn’t been this narrow since November 22, 2021. In 2023, Microsoft’s stock surged by 57%, surpassing Apple’s 47% rise. Microsoft’s stocks also experienced lesser devaluation in early 2024.
Business Impact:
Microsoft’s stock surge is attributed to increased corporate spending globally, notably in its Azure cloud computing arm. The integration of AI technologies into Microsoft’s products further fueled its success, surpassing Google in this segment.
Challenges Ahead:
Microsoft faces the challenge of sustaining customer investment in AI algorithm enhancement for productivity and new software launches. Meanwhile, Apple confronts sluggish business growth, especially in the Chinese market, alongside macroeconomic pressures affecting consumer spending.
Apple’s year-over-year revenue has seen a consecutive decline for four quarters, notes NIXsolutions. Analysts predict intensified competition in the smartphone market for Apple in 2024, while Microsoft’s AI and tech businesses face tests in retaining customer investment.