- Apple, Microsoft compete globally
- Microsoft briefly surpasses Apple
- AI investments impact valuations
Apple and Microsoft are engaged in a virtual race as their investments in AI begin to bear fruit.
A fierce competition between two prominent technology companies is underway to determine which one is the most valuable company globally.
For the first time since 2021, Microsoft surpassed Apple to become the most valuable company globally in terms of market capitalization, calculated based on the value and quantity of a firm’s shares.
During Thursday’s trading on the New York Stock Exchange (NYSE), Microsoft surpassed Apple at multiple junctures when its value reached $2.87 trillion (£2.25 trillion) and Apple shares declined by 1%.
However, Apple reclaimed the lead as the trading day progressed.
This recent development follows a substantial investment by Microsoft in artificial intelligence (AI).
It is the most significant investor in OpenAI, the organization that developed the revolutionary generative AI chatbot ChatGPT.
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Additionally, Microsoft is integrating AI into its products, including the Bing search engine.
Concurrently, Apple has encountered apprehension regarding iPhone demand, particularly in the crucial Chinese market.
The enduring adversaries have previously switched positions as the most valuable companies globally. Amidst the COVID-19 pandemic, Microsoft proved to be most advantageous when the surge in demand for its software facilitated remote work.
Concurrently, Apple encountered challenges in its supply chain and faced restrictions at its factories in China due to the COVID-19 pandemic. It had issued a warning regarding the subsequent delay in model deliveries.
Apple had occupied the leading position since 2010 on account of the iPhone’s phenomenal success, which Microsoft found difficult to rival.
However, AI growth has benefited the valuations of some companies. A manufacturer of computer processors for artificial intelligence, Nvidia, became the first chipmaker to be valued at $1 trillion earlier this year.
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