Market Value of Microsoft Surpasses $3 Trillion, Proving Success of AI Investment
NEW YORK: Microsoft’s stock market value surpassed the $3 trillion milestone for the first time on Wednesday, retaining its place as the world’s second most valuable company behind iPhone maker Apple.
Microsoft and Apple shares have been competing for the top spot as Wall Street’s most capitalized stock since the start of the year, with the iPhone maker briefly losing its crown to the software giant earlier in January.
Microsoft shares rose 1.6% to a record high of $405.15, allowing the tech giant to cross the $3 trillion market cap mark. Shares of Apple traded at $196.04, up 0.4%, giving it a market capitalization of $3.03 trillion, according to LSEG data.
Backed by its investment in ChatGPT maker OpenAI, Microsoft is widely seen as a frontrunner in the race to dominate the adoption of generative artificial intelligence (AI) among other tech giants including Google owner Alphabet, Amazon, Oracle and Facebook owner Meta. Platforms.
Using OpenAI’s technology, Microsoft has released newer versions of its flagship productivity software products, as well as its Bing search engine, which is expected to better compete with Google’s dominant search service.
Apple, meanwhile, is facing slowing demand for its iPhones, particularly in China — where the company is offering customers rare discounts to boost sales amid fierce competition from domestic rivals such as Huawei Technologies.
Meanwhile, Wall Street’s rally to record highs will be tested in the coming weeks as US megacaps in tech start to report results.
