Microsoft dethrones Apple as most valuable company after two-year

Microsoft has emerged victorious in the race for the title of the most valuable company, surpassing Apple for the first time in two years.

On Thursday the Bill Gates-founded company surpassed Steve Jobs-founded Apple company to become the world's most valuable, marking the first time since 2021.

This shift occurred as shares of the iPhone maker faced a sluggish start to the year amid mounting concerns over demand.

Microsoft has experienced a substantial surge in its stock value attributed to its early dominance in generative artificial intelligence, particularly through its investment in OpenAI, the creator of ChatGPT.

At the end of the trading day, Microsoft's stock concluded 0.5% higher, resulting in a market valuation of $2.859 trillion. It reached a peak of 2% during the session, briefly elevating the company's worth to $2.903 trillion.

Conversely, Apple observed a 0.3% dip in its stock, leading to a market capitalization of $2.886 trillion. The ongoing rivalry between Microsoft and Apple for the top spot in market valuation continues to unfold.

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"It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," said D.A. Davidson analyst Gil Luria.

Microsoft has integrated OpenAI's technology into its range of productivity software, contributing to a revival in its cloud-computing segment during the July-September period.

Conversely, Apple is contending with diminishing demand, particularly for its flagship product, the iPhone. The decline in demand is pronounced in China, a significant market, where the slow economic recovery from the pandemic and the resurgent Huawei are eroding Apple's market share.

In a note to clients on Wednesday, Redburn Atlantic expressed concerns that China may negatively impact performance in the upcoming years. Consequently, the brokerage downgraded Apple's shares to a "neutral" rating.

Since the beginning of 2024, at least three out of the 41 analysts covering Apple have revised their ratings downward.