Apple briefly became the most valuable company in the world yesterday, surpassing Microsoft in terms of market value for a few hours.
Apple was the first company to reach a $3 trillion market cap earlier in 2024 and has been overshadowed by Microsoft in recent months, but the recent unveiling of its highly anticipated AI platform at WWDC 2024 helped the company rise to the top spot. .
Apple’s market capitalization reached an impressive $3.3 trillion, leaving Microsoft’s $3.2 trillion behind, but only for a few hours before the latter’s stock prices restored the order of recent months.
Apple and Microsoft are competing for first place
Investors had been eagerly awaiting Apple’s AI strategy after more than a year of development by rival companies Microsoft and Google. The company’s shares rose more than 7% on Tuesday to hit a record high, before rising another 2.8% on Wednesday.
The iPhone maker’s generative AI solution, branded Apple Intelligence, includes the usual text and image generation capabilities. However, deeper integration allows for a more personalized experience, and the partial on-device processing aligns with the company’s ongoing commitment to privacy.
Due to the nature of Apple Intelligence, the need for the company’s most powerful chips will limit this to M-series Macs and iPads. The technology also requires access to A17 Pro chips, limiting it to the iPhone 15 Pro and 15 Pro Max models.
Analysts have predicted that this will boost sales of new iPhones, creating a new cycle powered by AI.
Apple shares are currently at $213.07, down from the post-WWDC high of $219.75, but up from a pre-WWDC level of $193.12.
However, through collaboration within the technology sector, Microsoft could benefit from Apple’s AI announcement. Although rival companies, Apple has committed to integrating OpenAI’s GPT models into its extensive AI capabilities, and with Microsoft being a major investor in the startup, all three companies could get a healthy boost.