Microsoft’s stock market value overlapped $3 trillion milestone for the first time, as after Apple it is the world’s second most valuable company.
Microsoft and Apple shares were competing for the top spot as the most exploited stock on Wall Street since the start of the year, with the iPhone maker briefly losing its crown to the software huge prior in January.
According to LSEG data ‘’Shares of Microsoft hit a record high of $405.63, up 1.7%, enabling it to breach the $3 trillion market capitalization level. Apple’s shares were trading at $195.50, up 0.3%, giving it a market value of $3.02 trillion.’’
With its strategic investment in OpenAI, the creator of ChatGPT, Microsoft emerges as a key contender in the competitive landscape of generative artificial intelligence (AI). This places Microsoft ahead in the race for market dominance, alongside major tech players like Alphabet (Google's parent company), Amazon.com, Oracle, and Meta Platforms (owner of Facebook).
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Leveraging OpenAI's technology, Microsoft has introduced updated versions of its primary productivity software and enhanced its Bing search engine. This move is aimed at consolidation Microsoft's position in the market and providing more strong competition against Google's major search offering.
Equally, Apple is dealing with inactive demand for its iPhones, particularly in the Chinese market. In response, the company is offering rare discounts to customers in an effort to boost sales amid intense competition from local competitors, such as Huawei Technologies.
“I think its AI optimism for Microsoft,” said Stifel analyst Brad Reback, adding that Apple doesn’t seem to have the same “clear AI story” coupled with concerns about iPhone sales growth rates and penetration.
According to LSEG data, The 54 analysts covering Microsoft’s stock have a median price target of $425, up from $415 a month ago, and their average recommendation is “buy.
Wall Street’s run-up to record highs will be put to the test in the coming weeks as megacap US technology-related companies begin reporting results.
