Microsoft on Wednesday achieved a significant milestone as its stock market valuation surpassed the $3 trillion mark for the first time. This positioned Microsoft as the second most valuable company globally, trailing only behind Apple.
Throughout the year, Microsoft and Apple have been engaged in a competitive battle for the top spot as the most capitalized stock on Wall Street. In January, Microsoft briefly overtook Apple, only to see the iPhone maker reclaim its position.
Microsoft’s shares reached a record high of $405.63, marking a 1.7% increase and pushing its market capitalization above $3 trillion. However, by the end of the trading day, the stock closed at $402.56, just below the crucial threshold of $403.65 required to maintain the $3 trillion valuation.
In contrast, Apple experienced a slight decline in its shares, closing down 0.35% at $194.50. Despite this, Apple’s market value remained at $3 trillion, according to LSEG data.
Microsoft’s strategic investment in OpenAI, the creator of ChatGPT, has positioned it as a frontrunner in the race for market dominance in generative artificial intelligence. This competition includes tech giants such as Google’s Alphabet, Amazon, Oracle, and Meta (Facebook’s parent company).
Leveraging OpenAI’s technology, Microsoft has introduced updated versions of its flagship productivity software and enhanced its Bing search engine, aiming to compete more effectively with Google’s dominant search offering.
Conversely, Apple is confronting reduced demand for its iPhones, particularly in China, where the company is responding with rare discounts to stimulate sales amidst strong competition from local competitors like Huawei Technologies.
Fueled by optimism surrounding artificial intelligence, Microsoft’s shares witnessed an impressive 57% growth in 2023 and have increased by 7% so far this year. In comparison, Apple’s stock rose by 48% in the previous year and has seen a modest 1% gain year-to-date.
As megacap U.S. technology-related companies prepare to report their results, Wall Street’s recent ascent to record highs will face scrutiny in the coming weeks.
