Microsoft’s stock market valuation surpassed $3 trillion for the first time on Wednesday, maintaining its position as the world’s second most valuable firm, after only Apple.
Microsoft and Apple shares have been fighting for the top spot as the most capitalised stock on Wall Street since the beginning of the year, with the iPhone maker briefly surrendering its crown to the software behemoth earlier in January.
Microsoft’s Stock Market
M.S shares reached a record high of $405.63, up 1.7%, allowing the company to surpass the $3 trillion market capitalization milestone. Apple’s stock was trading at $195.50, up 0.3%, with a market capitalization of $3.02 trillion, according to LSEG statistics.
With its investment in ChatGPT maker OpenAI, is widely regarded as a frontrunner in the race for market dominance in the rollout of generative artificial intelligence (AI) among other tech heavyweights such as Google owner Alphabet, Amazon.com, Oracle, and Facebook owner Meta Platforms.
It has used OpenAI technology to provide improved versions of its major productivity software products as well as its Bing search engine, which is intended to compete more effectively with Google’s leading search offering.
Apple, on the other hand, is seeing a slowing demand for its iPhones, particularly in China, where the company is offering customers uncommon discounts to promote sales despite fierce competition from domestic rivals 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 shares have a median price target of $425, up from $415 a month ago, and an average rating of “buy”.
Wall Street’s rise to record highs will be tested in the coming weeks as megacap US technology giants start reporting earnings.
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