Microsoft Surpasses Apple in Market Cap Thanks to AI

Microsoft has overtaken Apple as the world's most valuable public company, with a market capitalization of $2.89 trillion as of Friday, January 12, 2024.

This is the first time since 2020 that Microsoft has surpassed Apple, which now has a market value of $2.87 trillion.

One of the main reasons for Microsoft's success is its artificial intelligence (AI) assets, which have powered its cloud computing, gaming, and productivity businesses. Microsoft held an AI event in San Francisco on Thursday, where it showcased its latest innovations and capabilities to developers.

Analysts were impressed by the momentum around Microsoft's AI products, such as Azure Cognitive Services, GitHub Copilot, and Project Natick.

Apple, on the other hand, reported disappointing revenue for its fiscal fourth quarter on Thursday, missing analyst expectations by $6 billion. The company blamed supply chain constraints for the shortfall, which affected its iPhone sales and other products.

Apple CEO Tim Cook warned that the supply chain issues would worsen in the December quarter.

Microsoft and Apple have been competing for the title of the most valuable public company for years, with both reaching the $1 trillion and $2 trillion milestones.

Apple was the first to reach both marks, but Microsoft has been catching up with its steady growth and diversification. The two tech giants are also expected to face more competition from other companies, such as Amazon, Google, and Tesla, in the future.