Remarkably, Microsoft’s (NASDAQ: MSFT) shares have been scaling unprecedented heights, setting multiple all-time records in just a matter of weeks.
This bullish momentum, fueled by the year-long AI revolution, intensified notably in recent times. The catalysts behind this meteoric rise include a stellar fiscal Q1 2024 earnings report and the broader market’s resurgence amid easing macroeconomic challenges.
As Microsoft’s market cap continues its ascent, the company appears poised to challenge Apple’s (NASDAQ: AAPL) supremacy, prompting speculation on whether it can surpass the world’s largest company.
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MSFT and AAPL market cap analysis
On Monday, November 27, Microsoft’s shares rose around 0.3%, hitting a new all-time high of $378.61. This latest upswing further elevated the tech giant’s market capitalization to $2.81 trillion, solidifying its position as the world’s second-largest stock.
Apple, the biggest company by valuation, closed the same session at $189.79, down 0.01%. At this stock price level, AAPL’s market cap sits at $2.95 trillion, 3.2% short of its record high.
Since the start of 2023, Microsoft and Apple experienced similar gains, with MSFT surging by 58% and AAPL climbing by 51.7%. However, Microsoft’s growth still outpaced Apple’s, leading to a significant narrowing of the gap between the two tech behemoths.
With current market cap standings, Microsoft must further outpace Apple by approximately 5% to claim the title of the world’s largest company. To put it differently, MSFT shares need to exceed the $400 mark to dethrone AAPL as the globe’s most valuable stock. This assessment, of course, hinges on the assumption that AAPL maintains its current trading range.
Can MSFT do it?
One thing’s for certain, the milestone is certainly attainable. Whether it can actually happen mainly depends on the future market trends, and which company manages to attract more investors’ interest.
At the moment, MSFT seems in a better position, primarily because the company lodged itself at the forefront of the ongoing AI revolution, which has been reflected in its most recent earnings. AI is going nowhere for a while, meaning the Windows maker is expected to continue benefiting from it significantly.
On the other hand, Apple has been much quieter on the AI front compared to its rivals. In addition, the leading tech giant has recently witnessed the worst sales slowdown in 22 years, reporting four consecutive quarters of declining sales.
As a result, if the current trend of Microsoft outpacing Apple in growth rate persists, it would open the door for MSFT to potentially dethrone the iPhone maker and claim the top spot.
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