Microsoft’s AI gamble is paying off, market value surpasses $3 trillion

New York: Microsoft’s stock market value crossed $3 trillion for the first time on Wednesday and retained its place as the world’s second most valuable company after iPhone maker Apple.

Shares of Microsoft and Apple have been competing for the top spot as the most capitalized stocks on Wall Street since the beginning of the year, with the iPhone maker briefly losing its crown to the software giant in early January. .

Microsoft shares rose 1.6% to a record high of $405.15, enabling the tech giant to breach the $3 trillion market capitalization level. Apple shares were up 0.4% at $196.04, giving it a market cap of $3.03 trillion, according to LSEG data.

Backed by its investment in ChatGate maker OpenAI, Microsoft is widely seen as the leader in the race for market dominance in the rollout of generative artificial intelligence (AI) among other tech giants, including Google owner Alphabet, Amazon, Oracle and Facebook owner Meta. Is seen as. Platform.

Using OpenAI’s technology, Microsoft has launched new versions of its flagship productivity software products as well as its Bing search engine, hoping to better compete with Google’s flagship search offering.

Apple, on the other hand, is facing slowing demand for its iPhones, especially in China – where the company has been offering rare discounts to customers to boost sales amid tough competition from domestic rivals like Huawei Technologies.

Meanwhile, Wall Street’s record highs will be tested in the coming weeks as megacap US technology-related companies begin reporting results.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – Reuters)