Tech Stocks in the Spotlight as Microsoft Unseats Apple
From Money Magazine:
In a surprising stock market shake-up, Microsoft has taken over as the most valuable public company, surpassing Apple’s long-held position at the top of big tech. The switch is significant, as Apple’s reign as the leader of the S&P 500’s largest company has come to an end.
After a decade of being the world’s most valuable company by market cap, Apple has been overtaken by Microsoft. While some may interpret this as a sign of Apple’s weakening in the tech sector, Apple has seen a 39% growth in stock prices in the past 12 months, and tech stocks remain highly valuable.
The rise in tech stocks is being driven by the growing popularity of artificial intelligence. Microsoft’s recent leap over Apple in market capitalization is due in part to the company’s heavy investment and incorporation of AI across its suite of products.
Some experts see the spike in tech stocks as unsustainable, while others argue that the industry will continue to deliver strong returns to investors. However, finance research firm LPL Research expects the top tech stocks to grow earnings by 46% in the fourth quarter, indicating that the sector will remain influential in the S&P 500.
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