Microsoft’s stock hit a record $3 trillion on Wednesday, a milestone as it continues to compete closely with Apple for the title of the world’s most valuable company.
Since the beginning of the year, Microsoft and Apple have been fighting for the top spot among the most capitalized stocks on Wall Street, and in early January the iPhone maker briefly conceded to the software giant.
Microsoft shares rose 1.6% to an all-time high of $405.15, pushing the tech giant’s market capitalization past $3 trillion; Apple shares traded 0.4% higher at $196.04, giving it a market capitalization of $3.03 trillion, according to LSEG.
Thanks to ChatGPT’s investment in OpenAI, Microsoft is leading the battle for dominance in the generative artificial intelligence (AI) deployment market among other tech giants, including Google owner Alphabet, Amazon, Oracle and Facebook owner Meta.
Microsoft has used OpenAI technology to release a new version of its flagship productivity software and Bing search engine, which is expected to better compete with Google’s exclusive search service.
Apple, meanwhile, is facing declining demand for its iPhones, particularly in China, where it has been offering meager discounts to customers to boost sales amid tough competition from domestic rivals such as Huawei Technologies.
Wall Street’s overall performance, especially for large-cap U.S. technology companies, is under scrutiny as those companies are set to report their financial results in the coming weeks.
Race for market dominance: Apart from Microsoft and Apple, other tech giants such as Alphabet (parent company of Google), Amazon, Oracle and Meta Platforms (owner of Facebook) are also competing for market dominance, especially in such emerging technologies , like AI.