From Nasdaq:

Microsoft has gained a massive lead in artificial intelligence and is poised to overtake Apple in stock market value according to 13 institutional investors. As of Friday, Microsoft’s market cap was above $3 trillion, putting it ahead of Apple. 13 investment strategists and portfolio managers believe Microsoft will outpace Apple within five years.

Share prices and valuations may shift this week as Microsoft reports earnings on Tuesday and Apple on Thursday. Strategic investors expect Microsoft to outpace Apple in the long term due to recent successes in generative AI. Microsoft’s early investments in OpenAI and incorporation of AI technology across all business sectors have given it an edge.

Microsoft’s early investments in AI give it an edge over Apple, according to investors. Also, Nvidia’s significant gains position the chipmaker to compete for the world’s most valuable company in the next few years. Currently, Microsoft boasts 50 analyst recommendations for buying shares, while Apple has 26 positive ratings, and Nvidia may also become a contender for world’s most valuable company in the coming years, according to Phoenix Financial Services Chief Market analyst Wayne Kaufman.

After Apple’s stock surged more than 4,300% since the launch of the iPhone in 2007, it has remained flat in 2024. Microsoft has surged 7% this year and 57% in 2023, with 50 Wall Street analysts recommend buying Microsoft shares. Apple’s stock was flat in 2024, compared to Microsoft’s 7% surge this year and 57% surge in 2023. Microsoft’s shares are now trading at 33 times expected earnings, giving it a significant market value advantage.

Apple has launched its Vision Pro mixed-reality headset, a huge move of investment for the company and a major gamble in more than a decade. This is expected to be a cornerstone investment for portfolio managers. However, there are concerns about soft demand for iPhones in China, with slow economic recovery due to the COVID-19 pandemic and competition from Huawei.

Apple’s stock is flat so far this year compared to Microsoft’s 7% surge this year. Considering forward PE ratios, Microsoft has a significant edge over Apple. Based on this performance, 50 analysts recommend buying Microsoft shares, while 4 have neutral ratings and none recommend selling. 26 Wall Street analysts have positive ratings for Apple, and 12 have neutral ratings, while 2 analysts recommend selling Apple’s shares.



Read more: Investors see Microsoft’s stock market value leaving Apple behind