How did Microsoft close the gap with Apple to $100B as the most valuable U.S. company?

Microsoft’s market capitalization has risen significantly recently, bringing it closer to Apple for the most valuable U.S. company title. As of the weekend, Microsoft’s market cap is $2.73 trillion, compared to Apple’s $2.83 trillion. This represents a narrowing gap between the two tech giants, with Microsoft now only $100 billion behind.

You might be wondering why it is happening. Microsoft’s Azure cloud computing platform has experienced robust growth, benefiting from enterprise spending and its strategic focus on artificial intelligence (AI) integration.

Moreover, Microsoft is increasingly incorporating AI into its broader software portfolio, including productivity tools like Office and the Windows operating system. While the potential monetization of these AI enhancements remains uncertain, some investors view the company’s proactive approach in this area positively.

Compared to Apple, Microsoft’s stock has demonstrated greater resilience in the early days of 2024, weathering market jitters more effectively. This has further contributed to investor confidence in the company’s future prospects.

Not just this, Apple has been facing some challenges as well, as Apple’s core iPhone business has been affected by increased competition in the Chinese market, a crucial growth engine for the company. Recent controversy with Apple Watches might be adding to this as well.

Apple, however, possesses significant resources and brand loyalty, and its ability to address its current challenges and innovate successfully will determine its future standing in the market.

More here.