Microsoft Reclaims Market Leadership, Surpassing Apple in Ongoing Market Cap Flux

Microsoft Reclaims Market Leadership

On the 11th (local time), Microsoft (MS) achieved a significant milestone by surpassing Apple in market capitalization during a trading session on the New York Stock Exchange. The Wall Street Journal (WSJ) reported Microsoft Reclaims Market Leadership a surge in Microsoft’s stock price, reaching a market capitalization of $2.87 trillion, approximately 3,781 trillion won.

Brief Resurgence and Market Dynamics

While this marked MS’s return to the top position after a hiatus of about 2 years and 2 months since November 2021, the lead was short-lived. MS’s stock price experienced a subsequent downturn, allowing Apple to regain the top spot by the end of the trading day. This pattern of competition for market cap supremacy has been ongoing between Apple and Microsoft since February 4, 2019.

Factors Behind Microsoft’s Success

Experts attribute Microsoft’s brief market cap dominance to the growth of the cloud computing service sector. Notably, Microsoft’s strategic decision to invest over $10 billion in OpenAI, a prominent developer of ChatGPT (Generative Pre-trained Transformer) technology in the artificial intelligence (AI) field, played a pivotal role. The recent appointment of MS Vice President D. Templeton to the OpenAI board of directors further solidified the partnership, contributing to the positive impact on Microsoft’s stock price.

Industry Insights and Investment Recommendations

Tom Hancock, head of asset investment at GMO, an asset management company, emphasized Microsoft’s omnipresence in all information technology (IT) fields globally. He stated, “Microsoft is showing its presence in all information technology (IT) fields in the world,” and advised investors, saying, “If you have to invest in the IT field, you should definitely choose Microsoft.”

Apple’s Strategy in the Face of Challenges

Meanwhile, Apple faces challenges in the AI competition, compounded by the underwhelming performance of the iPhone 15 series. The upcoming iPhone 16 series, scheduled for release in the second half of the year, is anticipated to feature an ‘on-device AI’ function, running on the smartphone without requiring a network connection. Additionally, attention is focused on the potential success of Apple’s mixed reality (MR) headset, ‘Vision Pro,’ set to be released on the 2nd of the next month.

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