Microsoft, on Thursday, overtook Apple as the most valuable company in the world as the iPhone maker had its worst start in years due to growing demand concerns.
According to Reuters, Microsoft shares surged 1.5 per cent, valuing the Redmond, Washington-based company at $2.888 trillion, as its early lead in the battle to profit from generative artificial intelligence drew investors.
Apple fell 0.3% to $2.887 trillion in market capitalization, the first time since 2021 that its worth has slipped below Microsoft’s.
As of the latest close, the Cupertino, California-based company’s shares had fallen 3.3 per cent in January, compared to a 1.8 per cent rise in Microsoft.
Apple’s downturn comes after a string of downgrades that have fueled fears that sales of the iPhone, the company’s main cash cow, will remain poor, particularly in major market China.
“China could be a drag on performance over the coming years,” brokerage Redburn Atlantic wrote in a client note on Wednesday, citing competition from a resurgent Huawei as well as Sino-US tensions that have increased pressure on Apple.
Shares of Apple, whose market capitalization peaked at $3.081 trillion on December 14, concluded the year up 48%.
This was lower than Microsoft’s 57% increase, which actively rolled out genAI-powered technologies in 2023 as a result of its partnership with ChatGPT-maker OpenAI.
Microsoft has momentarily surpassed Apple as the most valued firm many times since 2018, most notably in 2021, when fears of COVID-related supply chain constraints weighed on the iPhone maker’s stock price.
