Thanks to its intense concentration on generative artificial intelligence (AI), a field that has gained favor with investors, Microsoft (MSFT.O) has surpassed Apple to become the largest business in the world by market value.
Over the past year, the IT giant has seen major market increases. It, along with Nvidia (NVDA.O) and Amazon (AMZN.O), placed a considerable emphasis on AI. Interestingly, Microsoft now has a market worth of over $1 trillion more.
Analysts are comparing this change to what happened in the early 2000s, when internet and technology companies started to overtake consumer and financial industries at the top of the market.
Microsoft’s adoption of OpenAI’s technology throughout its productivity software line contributed to a growth in the company’s cloud computing division during the July–September quarter. Its AI leadership has also made it possible to counter Google’s hegemony in online search.
Conversely, Apple is having difficulties dealing with declining demand, particularly for its main device, the iPhone.
The corporation is having special difficulties in China, a crucial country where the COVID-19 pandemic has caused a slow economic recovery and where competition from a resurgent Huawei is getting more fierce, which is hurting its market position. The market caps of other tech companies with an emphasis on artificial intelligence, such Nvidia, Meta Platforms (META.O), and Alphabet (GOOGL.O), have increased significantly over the past year.
