Apple Inc. has surpassed Microsoft Corp. to become the world’s most valuable company, a testament to its aggressive push into artificial intelligence (AI). This transition marks the first time in five months that Apple has overtaken its rival in market valuation.
On June 12, Apple’s stock (AAPL.O) surged nearly 4% to an all-time high of $215.04, catapulting its market capitalization to $3.29 trillion. In contrast, Microsoft’s (MSFT.O) market cap settled at $3.24 trillion, reflecting a pivotal moment in the high-stakes race among tech giants to dominate AI technology.
The rally in Apple’s shares follows a broader upswing in the tech-heavy Nasdaq index, spurred by encouraging signs of easing inflation. This bullish sentiment was further bolstered by Apple’s unveiling of groundbreaking AI features during its annual Worldwide Developers Conference (WWDC). The new capabilities, which include enhanced functionalities for Siri and AI-driven software improvements across its device ecosystem, have prompted a surge in investor confidence and anticipated robust iPhone sales.
“The AI advancements announced at WWDC addressed long-standing concerns about Apple’s position in AI technology,” stated Michael James, Managing Director of Equity Trading at Wedbush Securities. “These innovations signal a strong demand for a major iPhone upgrade cycle.”
Apple’s strategic focus on AI represents a shift in the company’s approach. Historically, it lagged behind competitors like Microsoft and Google-parent Alphabet in AI adoption, which impacted its stock performance earlier this year. However, recent successes, including beating market expectations for quarterly results in May and announcing a record $110 billion stock buyback, have rekindled investor enthusiasm. Apple’s shares have seen a 12% increase in 2024, despite being outpaced by Microsoft’s 16% and Alphabet’s 28% gains.
The resurgence of Apple’s stock also highlights a broader trend in the tech sector. Nvidia (NVDA.O), a leading player in AI chips, briefly surpassed Apple’s market value last week and has seen a staggering 154% rise this year. Meanwhile, Tesla (TSLA.O) remains the only other major tech stock to underperform Apple, with a 30% decline.
As Apple continues to embed AI deeper into its product lineup, it reinforces its commitment to staying at the forefront of technological innovation. This development underscores the evolving dynamics in the tech industry, where AI is becoming an increasingly pivotal factor in determining market leadership.
For more details, visit the full article on Reuters.
