AI race propels Silicon Valley tech firms Microsoft, Meta, and Google to new highs. Here's why

Big Tech companies in Silicon Valley, including Meta, Microsoft, and Google, are experiencing significant growth on Wall Street. Microsoft briefly reached a historic market valuation of $3 trillion, buoyed by optimism surrounding artificial intelligence (AI) and its potential for long-term growth. Despite slipping back to a valuation of $2.99 trillion, it briefly surpassed Apple, which achieved the $3 trillion milestone last year. Microsoft's shares surged by almost 57 percent in 2023, and its strategic investment in OpenAI positions it as a frontrunner in the race for market dominance in generative AI.

However, the tech industry also faces potential legal challenges. The US Justice Department is preparing to file a lawsuit against Apple for potentially violating antitrust laws, and other tech giants like Amazon, Meta, and Google have faced similar legal action in the past. Governments worldwide are introducing legislation aimed at regulating tech firms, which could reshape the tech market and foster more equitable competition and ethical business practices.

Key takeaways:

Microsoft Corporation briefly reached a historic market valuation of $3 trillion on January 24, surpassing Apple Inc., which achieved the $3 trillion milestone last year.
Microsoft's growth is largely attributed to optimism surrounding artificial intelligence (AI) and cloud computing support, with its revenue projected to rise by 15 percent in its 2024 fiscal year.
Apple is facing challenges in China with slowing demand for iPhones, leading the company to offer rare discounts to boost sales.
The United States Justice Department is preparing to file a lawsuit against Apple for potentially violating antitrust laws, which could have significant implications for the tech industry.

AI race propels Silicon Valley tech firms Microsoft, Meta, and Google to new highs. Here's why | Mint

Key takeaways:

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