In a recent market development, Microsoft has reclaimed its position as the world’s most valuable public company, surpassing Apple in market capitalization. The shift comes amid a surge in Microsoft’s stock fueled by a series of promising artificial intelligence (AI) announcements.
Amidst fluctuations in the tech market, Apple’s stock has experienced a downward trend over the past month, primarily driven by apprehensions surrounding iPhone sales in China and uncertainties about the reception of the iPhone 15. Rating agencies have downgraded Apple’s stock recently, resulting in a substantial loss of approximately $162 billion from its market capitalization in 2024 alone.
Contrastingly, Microsoft has been riding the AI wave for more than six months, witnessing a noteworthy surge in its stock following the announcement of a significant price adjustment for Copilot in Microsoft 365 – an AI-powered evolution of Office documents. Since then, Microsoft has consistently unveiled new AI features and made enhancements to its software and services at a remarkable pace, contributing to the positive momentum in its market capitalization.
The rivalry for the most valuable public company title is not new for Microsoft and Apple, as they have frequently traded places over the years. Microsoft surpassed Apple’s market cap in 2021, 2020, and 2018, only for Apple to reclaim the top spot.
Additionally, Google briefly held the lead in 2016. The current shift underscores the dynamic nature of the tech industry, where market trends and innovations play a pivotal role in determining the standings of industry giants.