On Wednesday, Microsoft joined Apple in the exclusive $3 trillion market valuation club, briefly earning the title of the second most valuable company globally. This happened when Microsoft's shares hit a high of $405.63, up about 1.7% for the day, thus pushing its market value beyond $3 trillion.
However, by end of the day, Apple reclaimed its crown; closing at $194.50 per share, its total market value stood back at $3 trillion. Meanwhile, Microsoft's shares closed at $402.56, which brought down its market capitalization to $2.99 trillion.
In the previous year, Microsoft's stock had a remarkable run, registering a surge of 57%. In comparison, rival Apple saw its shares rise by 48%. A prime factor driving Microsoft's success story is its significant strides in artificial intelligence development.
In contrast, their rival Apple is currently dealing with some challenges. It's lagging in the AI domain, coupled with a slowdown in iPhone sales, primarily in the Chinese market. Microsoft's advancement in AI includes multi-billion dollar investments in OpenAI, the company behind ChatGPT.
Recently, Morgan Stanley raised its price target for Microsoft's shares from $415 to $450. The financial services company believes Microsoft's influence in the AI industry is on a steady rise.
Earlier, Microsoft had briefly leapfrogged Apple as the world's most valuable company. This happened when its stock experienced a 1% gain, thus pushing its market value to $2.87 trillion.
