Microsoft Overtakes Apple in Market Value Amid AI and Cloud Growth
Microsoft has overtaken Apple to become the most valuable company in the world, driven by exceptional growth in cloud computing and artificial intelligence sectors. This marks a significant shift in the global technology landscape, where Apple had long held the top position.
As of the close of the U.S. stock markets on Friday, Microsoft’s market capitalization reached $3.235 trillion. In comparison, Apple, the manufacturer of the iPhone, ended the day with a market value of $3.07 trillion. This shift has placed Microsoft at the summit of the global tech hierarchy. According to a report by The Information newsletter, semiconductor giant Nvidia secured the third spot with a market capitalization of $2.76 trillion.
Microsoft shares surged after its March quarter earnings, released last Thursday, exceeded analysts’ expectations. In a meeting with investors, Microsoft Chief Executive Officer highlighted the sustained demand for the company’s cloud services and AI products. The consistent strategic focus on artificial intelligence and cloud computing has notably boosted investor confidence, as reflected in the company’s share performance this year. Investopedia recalled that back in October 2015, Microsoft shares rose by 10 percent when revenue from its Azure cloud business doubled.
Meanwhile, Apple also reported stronger-than-expected results for the first quarter, propelled by robust iPhone sales. However, the company is facing headwinds in the form of trade tariffs. Apple’s reliance on imported components in its supply chain has made it more vulnerable to these tariffs. As a result, Apple shares have declined by approximately 18 percent since the beginning of the year, marking one of the steepest drops among major tech firms. Apple Chief Executive Officer Tim Cook indicated that, if the current conditions persist, tariffs could impose an additional financial burden of $900 million in this quarter alone.
According to Dow Jones market data, Apple has seen the largest decline in market value among top companies so far this year. Tesla has also experienced a substantial 29 percent drop in its share value. Overall, Microsoft’s aggressive push in cloud and AI technologies, alongside Apple’s commercial challenges, have emerged as the key factors behind this shift in market leadership.