From Nasdaq:

Microsoft overtook Apple as the world’s most valuable company after Apple’s shares experienced a weak start to the year, resulting in a market capitalization of $2.865 trillion for Microsoft. This surge follows the company’s investment in ChatGPT-maker OpenAI and its incorporation of generative AI technology across its suite of productivity software.

At its peak, Microsoft was worth $2.903 trillion, and Apple’s market capitalization stood at $2.871 trillion. Analysts predict that Microsoft’s faster growth and potential benefits from the generative AI revolution may lead to long-term success. This contrasts with Apple’s weakening demand, particularly in China, and a subsequent downgrading of the company’s shares to “neutral” by certain analysts.

Despite a slow start to the year and expensive share price-to-earnings (PE) ratios, both companies have seen impressive gains. Apple closed last year with a 48% gain, lower than Microsoft’s 57% rise, and Microsoft currently has no “sell” rating from brokerages, with nearly 90% recommending to buy the stock. This positive sentiment differs from Apple’s two “sell” ratings and only two-thirds of analysts rating it a “buy”.



Read more: Microsoft briefly overtakes Apple as world’s most valuable company