Microsoft Corporation is on the verge of reclaiming the title of the most valuable U.S. company from Apple Inc.
Currently valued at $2.73 trillion, Microsoft trails Apple by a margin of approximately $100 billion with the latter holding a valuation of $2.83 trillion.
This development marks a critical juncture as Microsoft hasn’t been within such striking distance of Apple since November 22, 2021, and Apple hasn’t been valued less than Microsoft since November 17, 2021.
The narrowing market cap gap follows a robust performance by Microsoft’s stock, which saw a commendable 57% rise throughout 2023, compared to Apple’s 48% growth.
The resilience of Microsoft’s Azure cloud-computing business, buoyed by sustained enterprise spending and the surge in artificial intelligence applications, has played a pivotal role in this ascent.
Analysts highlight that Microsoft has overtaken Google’s parent company, Alphabet Inc., in the cloud, underscoring the significance of its Azure platform.
As Microsoft’s business continues to leverage AI advancements, particularly in productivity and software offerings, 2024 poses a crucial test.
On the other side of the spectrum, Apple faces challenges in a plateauing market, with four consecutive quarters of year-over-year revenue declines and analysts downgrading the stock amid concerns about the smartphone market’s sustained pressure.
The technology sector witnesses a compelling narrative of rivalry with Microsoft fervently vying for the crown in this market cap showdown.
