Microsoft has taken the advantage over Apple in terms of stock market valuation. For investors, this domination could last, thanks to the firm’s advances in artificial intelligence.
Having become the world’s largest market capitalization, Microsoft saw its shares jump 7% in 2024, propelling its valuation beyond the $3,000 billion mark, and surpassing that of Apple. According to thirteen institutional investors, this trend should continue over the next five years, supported in particular by Microsoft’s recent successes in generative artificial intelligence. But another player, Nvidia not to mention it, could enter the game of stock market supremacy.
Microsoft (but not only) driven by the power of generative artificial intelligence
Microsoft has taken a head start in terms of artificial intelligence by being a little ahead of all its competitors, thanks to its investment in OpenAI, the origin of ChatGPT. Investors believe the technology will give Microsoft a significant advantage, particularly in cloud computing, where it competes with Amazon and Alphabet.
With applications like Outlook that use AI to help write emails and the emergence of Copilot and its professional version, Microsoft’s diversified strategy, which ranges from the cloud to games, today seems more convincing than Apple’s historical dependence on the iPhone.
For some observers, the competition between Apple and Microsoft could evolve into a race for second place. Nvidia’s impressive performance has not gone unnoticed and the American company, valued at $1.5 trillion, sees its business propelled by its chips, which themselves are fueling the AI revolution.
Investors and analysts doubt Apple
Investors are wondering about Apple’s response, which appears to be a bit behind the times when it comes to AI. Without forgetting the challenges that the Apple brand faces in China, with timid iPhone sales and Huawei gaining ground. If Apple has successfully integrated artificial intelligence into its products, the company is at a crossroads and knows that AI projects are expected. And it is not certain that the launch of the Vision Pro mixed reality headset can maintain Apple’s position.
Imagine that in 2023, Microsoft shares are up 57%. Now the world’s largest valuation ahead of Apple, the firm that powers Windows is favored by Wall Street analysts, who today recommend the purchase of company shares at the window rather than Apple shares.
Source : Reuters
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