Microsoft overtook Apple as the world’s most valuable company on Thursday after Apple’s shares made a weak start to 2024 due to concerns from some analysts over iPhone demand.
Shares of Redmond, Washington-based Microsoft were last up 1.6%, giving it a market valuation of $2.875 trillion as its early lead in the race to make money from generative artificial intelligence helped draw investors.
Apple was 0.9% lower with a market capitalization of $2.871 trillion – the first time since 2021 that its valuation has fallen below that of Microsoft.
The Cupertino, California-based company’s stock has slid 3.3% in January as of last close, compared with a 1.8% rise in Microsoft.
“It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution,” said D.A. Davidson analyst Gil Luria…
Microsoft has briefly taken the lead over Apple as the most valuable company a handful of times since 2018, most recently in 2021 when concerns about COVID-driven supply chain shortages hit the iPhone maker’s stock price.
MacDailyNews Take: Apple is clearly behind in AI, especially generative AI, and is currently scrambling to catch up. The stock deserves some punishment for that alone.
See also:
• Gene Munster: Apple stock likely to get a boost when ‘good enough’ generative AI arrives later this year – January 9, 2024
• Apple caught flat-footed on generative AI; company preps AI features for devices, software – October 23, 2023
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