New Delhi: Microsoft temporarily claimed the title of the world’s most valuable company on Thursday, surpassing Apple for the first time since 2021. The move was prompted by a slow start to the year for Apple, fuelled by rising worries about weakening demand for its shares.
Microsoft’s ascent is attributed to its substantial gains in generative artificial intelligence, particularly through its investment in OpenAI, the creator of ChatGPT.
Conversely, Apple’s shares closed 0.3% lower, resulting in a market capitalisation of $2.886 trillion. The ongoing competition for the top spot between Microsoft and Apple has been a recurring theme over the years.
Microsoft’s strategic integration of OpenAI’s technology across its suite of productivity software played a significant role in the rebound of its cloud-computing business in the July-September quarter.
Meanwhile, Apple faces challenges with weakening demand, particularly for the iPhone, exacerbated by slow economic recovery and increased competition from Huawei in the vital Chinese market.
As a result of these challenges, brokerage Redburn Atlantic downgraded Apple’s shares to “neutral,” citing China as a potential drag on performance in the coming years. Several analysts covering Apple have also downgraded their ratings since the beginning of 2024.
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