Microsoft has outpaced its rival of late thanks to investor hopes of AI-fueled growth.<\/p>\n\n\n\n
Microsoft rose above Apple to become the world\u2019s most valuable publicly traded company at the close of trading on Friday.<\/p>\n\n\n\n
The software giant\u2019s share price has continued to rally so far this year, building on last year\u2019s strong performance, whereas Apple has encountered a number of obstacles. Microsoft\u2019s aggressive rollout of a number of AI features over the past year has been rewarded by investors, who are hoping that the Seattle-based giant will be best positioned to take advantage of the AI boom.<\/p>\n\n\n\n
Microsoft\u2019s shares rose by more than 3% for the week, taking its market value to $2.89 trillion, just ahead of Apple, whose shares dropped nearly 3%, with its market capitalization edging down to $2.87 trillion.<\/p>\n\n\n\n
Microsoft briefly topped Apple during intraday trading on Thursday for the first time since 2021 before giving up the top spot to the iPhone maker later in the session. <\/p>\n\n\n\n
Shares of Apple, whose market value peaked at $3.081 trillion on December 14, ended last year with a gain of 48%. Microsoft, however, registered a 57% increase for the year.\u00a0<\/p>\n\n\n\n
So far this month, Apple\u2019s shares are trading slightly lower versus a 5% rise for Microsoft. This comes as concerns over weakness in iPhone sales, especially in the key Chinese market, have triggered a number of analyst downgrades of Apple stock.<\/p>\n\n\n\n
\u201cChina could be a drag on [Apple\u2019s] performance over the coming years,\u201d<\/em>\u00a0brokerage Redburn Atlantic said, as cited by Reuters. In a note to clients, the brokerage\u2019s analysts pointed to competition from a resurgent Huawei and growing tensions between Washington and Beijing that have increased pressure on Apple.<\/p>\n\n\n\n