Microsoft overtakes Apple to dominate the world market capitalisation

Microsoft has overtaken Apple to become the world's largest corporation by market value, spurred by its substantial concentration on generative artificial intelligence (AI), an area that has attracted increasing investor favour.

The technology behemoth has seen notable market increases over the last year, and it, along with Nvidia and Amazon, placed a great deal of attention on AI. Interestingly, Microsoft now has a market worth of nearly $1 trillion more.

Analysts are comparing this change to what happened in the early 2000s when internet and technology businesses started to overtake consumer and financial industries at the top of the market.

LSEG data indicates that Apple's market valuation was $2.875 trillion at Friday's end, having peaked at $3.081 trillion on December 14. Microsoft's market worth was $2.887 trillion, its highest ever.

Microsoft's adoption of OpenAI's technology throughout its productivity software line contributed to a growth in the company's cloud computing division during the July–September quarter. Its AI leadership has also made it possible to counter Google's hegemony in online search.

Conversely, Apple is having difficulties dealing with declining demand, particularly for its main device, the iPhone.

The corporation is having real difficulties in China, a crucial country where the COVID-19 epidemic has caused a slow economic recovery and where competition from a resurgent Huawei is getting stronger, which is hurting its market position.

(Sources: investing.com, reuters.com)