Experts suggest that AI could do for Microsoft what iPhones did for Apple

A recent survey of investment strategists suggests a potential shift in the tech industry, with Microsoft’s stock market value anticipated to surpass Apple’s over the next five years. This prediction is primarily attributed to Microsoft’s perceived edge in developing and implementing generative AI technology.

Microsoft’s stock has experienced a 7% increase in 2024, propelling its market capitalization beyond $3 trillion and temporarily dethroning Apple as the world’s most valuable company.

Notably, all 13 investment professionals surveyed by Reuters expressed their expectation that Microsoft’s lead will persist.

Microsoft’s strategic investments in companies like OpenAI and its integration of AI across various business segments, including cloud computing, gaming, and software, are perceived as key differentiators. Analysts suggest this focus on AI could significantly contribute to future growth, particularly in the competitive cloud computing market.

While Apple has incorporated AI into features like improved iPhone photography, investors await a more comprehensive AI roadmap.

Additionally, concerns regarding iPhone demand in China, a critical market, contribute to some uncertainty surrounding Apple’s future performance.

While the tech industry’s future remains uncertain, investor sentiment favors Microsoft’s AI leadership as a catalyst for surpassing Apple’s stock market value. Apple, however, has the opportunity to regain investor confidence by addressing concerns about its iPhone business and articulating a clear AI strategy.

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