The shift in market capitalization is attributed to Microsoft's early lead in generative artificial intelligence, which has been driving its stock price upwards. In contrast, Apple's stock has been affected by rating downgrades and concerns over weak iPhone sales, particularly in China. Despite the temporary shift, both companies' stocks are considered overpriced based on their expected earnings.
Key takeaways:
- Microsoft Corp. briefly overtook Apple Inc. as the most valuable company in the world in intraday trading, with a market capitalization of $2.875 trillion.
- Apple's stock dipped 0.9% to a market cap of just $2.871 trillion, the first time since 2021 that its value has fallen below Microsoft’s.
- Microsoft has been growing faster than Apple, with its stock rising 57% over the last year, thanks in part to its aggressive rollout of generative AI-powered tools.
- Apple's stock has been hit by a series of rating downgrades due to concerns over weak iPhone sales, especially in China, and regulatory scrutiny over its deal with Google.