Apple defeated. Microsoft is the most expensive company in the world. At least for a moment

Market analysts have been expecting for some time that Apple and Microsoft will finally pass at the top of the list of the most valued listed companies. The value of the Redmond giant’s shares increased continuously almost throughout last year, which was supported by investments in generative artificial intelligence.

Microsoft is one of the main shareholders in OpenAI, which is responsible for creating the famous ChataGPT. It also develops its own AI assistant – Microsoft Copilot. It is currently being integrated with the Windows 11 operating system.

On Thursday, at the close of the New York Stock Exchange, the company’s shares increased by 0.5%, which translated into a capitalization of USD 2.859 trillion. However, during the session, the company’s shares rose by up to 2%, which meant that its valuation was EUR 2.903 trillion for a while.

Apple, in turn, closed the session with a loss of 0.3 percent. As a result, the company’s valuation dropped below EUR 3 trillion – to USD 2,886. Although the passing was momentary, it has a symbolic meaning.

“It was inevitable that Microsoft would overtake Apple because Microsoft is growing faster and can take greater advantage of the generative artificial intelligence revolution,” explained Gil Luria, an analyst at DA Davidson,

Apple’s problems in China. Are iPhones losing their magic?

Apple has been struggling with declining demand for a long time, which applies primarily to the iPhone, which is the company’s driving force. This problem is most visible in China, where the slowly reviving Huawei is stealing more pieces of the market cake from the Cupertino company.

“The situation in China may negatively impact Apple’s results in the coming years,” brokerage Redburn Atlantic said on Wednesday, downgrading Apple’s stock rating to “neutral.”

Interestingly, the penny sales of the iPhone directly translated into the earnings of Apple’s CEO, Tim Cook. , the company’s CEO remuneration in 2023 was “only” $63.2 million, compared to $99.4 million that Tim Cook received a year earlier.