Now the world’s largest market capitalization, Microsoft has the assets to remain there for a while

Alexandre Boero

Clubic news manager

January 22, 2024 at 10:58 a.m.


Microsoft VivaTech 2022 © Alexandre Boero for Clubic

The Microsoft logo © Alexandre Boero / Clubic

Microsoft recently became the company with the largest market capitalization in the world. And it has assets to remain so, including one for which it excels: artificial intelligence.

The giant Microsoft has reached new heights in recent days, becoming the world’s largest market capitalization, flirting with a valuation of $3,000 billion, even surpassing its long-time rival, Apple. This remarkable rise is accompanied by an intelligent diversification of its portfolio, now powered by artificial intelligence, to the detriment of a hesitant smartphone market, which is slowing down the Apple brand.

Microsoft eclipses Apple, and relies on its diversification through artificial intelligence

In the midst of fierce competition with Apple, Microsoft has in recent days crossed the $2.9 trillion mark in market capitalization. For its part, Apple is experiencing a slight decline caused by concerns linked to the slowdown in the smartphone market, and to shaky sales of the iPhone 15 in China in particular. And all this benefits… Microsoft, whose diversification of activities (application suite, operating system, Cloud, cybersecurity, gaming and artificial intelligence) is a major asset.

While Samsung and Apple have been competing for number one position in smartphone sales for several years, Microsoft continues to stand out in other ways. The company not only shines with its market capitalization, but it also excels in the field of artificial intelligence.

The recent example that comes to mind is the recent launch of Copilot Pro, a subscription service integrating its AI, which now open to all companies, could open up new, undoubtedly considerable, sources of revenue. , for Microsoft. Because Copilot could further boost the company’s Cloud activity (Azure).

Microsoft Logo © JPstock /

© JPstock /

The future promises to be beautiful

The first quarter of fiscal 2024 (period from July to the end of September 2023) has already demonstrated the significant growth of Microsoft’s business operations and its platforms Xbox, Windows, Office, LinkedIn and Bing. And with the imminent addition of Activision-Blizzard, revenue from popular franchises like Call of Duty could propel Xbox to the top revenue stream for Microsoft.

As for the firm’s competitors at the window, Apple and Meta’s investments in virtual reality are massive, but consumers seem reluctant to adopt devices such as the Vision Pro. On the other hand, Microsoft has abandoned its metaverse projects (undoubtedly a good idea) to concentrate its efforts on artificial intelligence, which seems to be bearing fruit, at least if we are to believe the movements of investors.

As the technology landscape rapidly evolves, Microsoft appears to have found the right balance between impressive market capitalization, strategic diversification and leadership in the field of artificial intelligence. It remains to be seen whether this trend will continue and whether Microsoft’s innovation will continue to mark the global technology industry. What is certain is that the company holds all the cards.

Sources: Windows CentralClubic

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