NEW YORK: Microsoft briefly surpassed its rival Apple to become the world’s most valuable company on Thursday. This highlights the difference between a company driven by artificial intelligence and another whose iPhone sales are a cause for concern. Shortly after the markets opened on Wall Street, Microsoft’s market capitalization reached almost US$2.9 trillion, slightly higher than Apple, according to calculations by AFP. However, Microsoft only held the top spot for a few seconds before returning to second place. Nonetheless, this illustrates how AI has reshaped investors’ enthusiasm for the two companies.
The Redmond, Washington-based company has been performing well largely due to its partnership with OpenAI, the creator of the generative AI interface ChatGPT, in which Microsoft holds almost half the capital. Since the launch of ChatGPT in November 2022, Microsoft shares have gained almost 75%, while Apple has seen a still impressive 35% rise over the same period. Microsoft has also launched several products enabling businesses and individuals to use the capabilities of generative AI, including through its Bing search engine and Copilot virtual assistant.
Meanwhile, Apple has faced market concerns about its ability to maintain its strong growth. An analyst at Barclays lowered their outlook for the stock, citing concerns about a slowdown in iPhone 15 sales, particularly in China. This is a major market for Apple. Furthermore, analysts at Redburn Atlantic revised their opinion to “neutral” from “buy” due to concerns about limited growth in the coming years and mixed results for the current quarter. Since January 2022, Apple’s market capitalization has surpassed the three trillion-dollar threshold on several occasions. However, the company regularly carries out massive share buybacks, which mechanically reduces the number of shares in circulation and thus lowers its market capitalization. – AFP