Friday, June 14, 2024 Banner
HomeSoftwareAIMicrosoft Cracks $3 Trillion Market With AI Edge, Apple in Sight.

Microsoft Cracks $3 Trillion Market With AI Edge, Apple in Sight.

Just behind Apple, Microsoft’s stock market valuation crossed the $3 trillion milestone on Wednesday. This kept Microsoft’s ranking as the second-most valuable corporation in the world.

Ever since the year began, Apple and Microsoft shares have been vying to be the most capitalized firm on Wall Street; the software behemoth momentarily surpassed the iPhone manufacturer in this regard early in January.

At $405.63, up 1.7 percent, Microsoft’s shares set a record and helped the company cross the $3 trillion market value threshold. However, it ultimately closed at $402.56, meaning Microsoft’s valuation was $2.99 trillion, barely above the $3 trillion mark at $403.65.

According to LSEG data, Apple’s shares erased previous advances and finished down 0.35 percent at $194.50, giving it a $3 trillion market worth.

Thanks to its investment in ChatGPT developer OpenAI, Microsoft is seen as a leader in the race for market supremacy in the application of generative artificial intelligence (AI), surpassing other significant players in the tech sector like Alphabet, the parent company of Google,, Oracle, and Meta Platforms, the owner of Facebook.

Microsoft has introduced new versions of its well-liked productivity software packages as well as its Bing search engine, which is expected to use OpenAI’s technology to more successfully compete with Google’s dominant search service.

On the other hand, Apple is witnessing a downturn in the market for its iPhones, particularly in China, where it is increasing sales by giving consumers occasional discounts despite strong competition from local competitors like Huawei Technologies.

Stifel analyst Brad Reback stated, “I think it’s AI optimism for Microsoft,” noting that Apple doesn’t appear to have the same “clear AI story” and raising doubts about the penetration and growth rates of iPhone sales.

Based on LSEG data, the 54 analysts that cover Microsoft’s stock have a median price target of $425, which is higher than their previous month’s price goal of $415. They also suggest “buy” on average.

Microsoft’s stock rose by about 57% in 2023 and is now up 7% this year, fueled by optimism for AI. Apple’s stock increased by 48% in the previous year and is currently up 1% so far this year.

As megacap US technology companies start to report earnings, Wall Street’s ascent to record highs will be tested in the upcoming weeks.


Most Popular

Recent Comments