Microsoft Briefly Surpasses Apple as World’s Biggest Company by Market Cap [Update]

With its market value reaching $2.87 trillion, Microsoft has dethroned Apple to become the world’s most valuable public company, the Financial Times reports.

The surge in generative AI, fueled by the success of OpenAI’s ChatGPT since late 2022, has continued to captivate investors. Microsoft, a leader in AI chatbots across search and workplace products, has reaped substantial benefits from this trend.

The reshuffling of the world’s wealthiest companies has also brought AI chipmaker Nvidia closer to surpassing Amazon’s market capitalization of $1.6 trillion, with a notable 11% increase in its stock this year.

While Microsoft thrives in the AI fervor, Apple faces challenges, particularly in weaker iPhone sales, prompting Wall Street analyst downgrades.

Apple’s focus on spatial computing, exemplified by the upcoming Vision Pro headset, aims to revolutionize user interaction with rich 3D graphics and innovative hand gestures.

Apple’s absence from the AI boom, contrasting with Microsoft’s prominence as OpenAI’s primary backer, has contributed to the market dynamics. The success of ChatGPT has boosted demand for Microsoft’s cloud services and Nvidia processors essential for creating advanced AI tools.

The historic rivalry between Apple and Microsoft dates back to the 1980s, marked by accusations and legal battles.

Driven by the success of the iPhone, Apple’s market value finally overtook Microsoft in 2010, a position it retained for several years as Windows struggled with the transition to mobile computing.

Nvidia, with a market capitalization of $1.35 trillion, is closing in on Amazon, valued at $1.6 trillion. The company’s executives express confidence in sustained demand for AI hardware, anticipating growth into 2025.

Update Jan. 11, 2024: Apple has regained the top spot at the end of the trading day.