For over 10 years, Apple has been the stock market’s king, overtaking Exxon Mobil in 2011 and holding the title almost uninterrupted. On Friday, however, Microsoft surpassed Apple as the world’s most valuable public company. Microsoft’s market value surged to $2.89 trillion, higher than Apple’s $2.87 trillion, largely due to generative artificial intelligence. While the tech industry still dominates the top, companies such as Microsoft, Nvidia, and Alphabet have momentum due to placing generative A.I. at the forefront of their plans. Microsoft has invested in OpenAI, and A.I. accounted for about three percentage points of growth for Azure revenue. This change may be indicative of a fundamental shift in the industry, as the generative A.I. trend outshines Apple’s strategy. Apple still relies heavily on iPhone sales for its revenue growth. Despite Apple’s focus on augmented reality with the upcoming release of the Vision Pro headset, the company has yet to catch up in the A.I. race. The future for Apple may largely rely on embracing generative A.I. to maintain its status as an innovative tech company.
Data extracted from the article by The New York Times.