The market value of Microsoft shares exceeded $3 trillion for the first time – yesterday, Wednesday – to maintain its position as the second largest company in the world in terms of value, directly after Apple.
Microsoft and Apple shares are competing for first place as their most capitalized shares on the Wall Street Stock Exchange since the beginning of the year, with the company that produces iPhone phones briefly losing the lead position to the software giant earlier this month.
Microsoft shares hit a record high of $405.63, an increase of 1.7%, breaching the $3 trillion barrier.
Apple shares were trading at $195.50, an increase of 0.3%, bringing its market value to $3.02 trillion, according to data from the London Stock Exchange Group.
Supported by its investment in OpenAI, the company that invented the chatbot (GBT), Microsoft is widely seen as the favorite in the market race to deploy generative artificial intelligence among other giant technology companies that include Alphabet, the owner of Google, and Amazon.com. com, Oracle, and Meta Platforms, the parent company of Facebook.
By using Open AI technology, Microsoft has released newer versions of its distinguished software, in addition to its search engine (Bing), which is expected to improve its chances of competing with the dominant search engine, Google.
Earlier this month, Microsoft briefly overtook Apple as the world’s most valuable company for the first time since 2021 after the iPhone manufacturer’s shares got off to a weak start to the year due to growing concerns about demand.
Laying off employees
In a later development, Microsoft announced the layoff of 1,900 employees, representing 8% of its workforce in the electronic games sector, most of them from Activision Blizzard, after its acquisition of the gaming company. The company’s stock continues to achieve record levels and its market value stands at $3.007 trillion.
Demand declines
On the other hand, Apple is facing a decline in demand for its iPhone devices, especially in China, where the company offers its customers rare discounts to boost sales amid intense competition from local competitors such as Huawei Technologies.
“I think this is (due to) Microsoft’s AI support,” said Brad Riback, an analyst at consulting and brokerage firm Stifel, and that Apple does not appear to have a “clear AI direction” beyond concerns about iPhone sales growth rates and penetration.
Data from the London Stock Exchange Group said that 54 analysts covering Microsoft shares set an average price target of $425, up from $415 a month ago, and their average recommendation was “buy.”
The rise of Wall Street companies to record levels will be tested in the coming weeks when giant American companies begin publishing their results.
