When we talk about tech companies, the first name that comes to our mind is Microsoft and Apple. There is constant competition between these two big companies.Â
If we talk about the most valuable companies in the world, both are included at the top. But the surge in AI has brought a new twist to the long-running competition between the two Big Tech groups. What is the complete news, let us give complete information in this article.
AI made Microsoft a bigger company than Apple.
Market Analysis & Historical Performance:
Apple's name was once among the world's most valuable companies. Now Microsoft holds that title. After 2021, Microsoft has once again overtaken Apple to become the world's most valuable company.Â
The beginning of the year 2024 was not that special for Apple. There was a decline in Apple's shares at the beginning of the year and now its effect is visible.Â
Shares of the software company Microsoft rose about one percent on Friday. The market valuation of Microsoft increased to $2.887 Trillion. This makes it the number one company in the world in terms of valuation.
However, Apple's shares gained 0.18 percent and its market cap was around $2.874 Trillion. This happened earlier in 2021. Microsoft had surpassed Apple in market value. Microsoft is leading the race in earning money due to generated artificial intelligence. For this reason, investors are liking the company very much.
Driving Factors:
American stock market experts say that Microsoft was almost certain to overtake Apple. This is because Microsoft's growth is faster. It benefits from artificial intelligence. Last year, on December 14, 2023, the market cap of California-based company Apple was at its peak.
During this period, the company's market capitalization increased to $3.081 Trillion. If we talk about last year, Apple shares had seen a rise of up to 48 percent.
During this period, Microsoft shares saw a rise of up to 57 percent. Thanks to its collaboration with OpenAI, the creator of ChatGPT, Microsoft launched the AI-powered tool in 2023. It became popular.Â
At the same time, Apple's shares have weakened. Several times, the company's rating has been downgraded. This has increased concerns about iPhone sales for Apple.
Outlook for Apple:
Apple iPhone sales have been declining for a long time. The biggest decline is especially being recorded in China. This is because China has a major share in global sales. In such a situation, Apple is facing losses at the global level due to sales down in China.
Brokerage Redburn Atlantic has said in a note that Apple company's performance in China may decline in the coming years. The brokerage said the pressure on Apple has increased. The brokerage pointed to US-China tension and competition between the Huawei Mate 60 series and iPhone 15.
Market Sentiment:
According to the report, Wall Street has become more positive about Microsoft. No one has given a sell rating on Microsoft. Ninety percent of the brokerages tracking the company have kept a buy rating on the stock.Â
Apple's account has two sell ratings. Only two-thirds of the analysts tracking the company have given it a buy rating.
After Microsoft and Apple. Saudi Aramco, a Saudi Arabian company, is the third richest company in the world. After this is Google's parent company Alphabet. Amazon is the next company. NVIDIA is at number six.
Largest Companies by Market Cap List (14 January 2024)
| Rank | Company Name | Country |
|---|---|---|
| 1 | Microsoft (MSFT) | United States |
| 2 | Apple (AAPL) | United States |
| 3 | Saudi Aramco (32222.SR) | Saudi Arabia |
| 4 | Alphabet (Google) | United States |
| 5 | Amazon (AMZN) | United States |
| 6 | NVIDIA (NVDA) | United States |
| 7 | Meta Platforms (Facebook) (META) | United States |
| 8 | Berkshire Hathaway (BRK-B) | United States |
| 9 | Tesla (TSLA) | United States |
| 10 | Eli Lilly (LLY) | United States |
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