Microsoft hits $3T market value for first time as it chases Apple

Microsoft’s stock market value crossed the $3 trillion milestone for the first time on Wednesday, retaining its place as the world’s second most valuable company, just behind iPhone maker Apple.

Microsoft and Apple shares have been vying for the top spot as the most capitalized stock on Wall Street since the start of the year, with the iPhone maker briefly losing its crown to the X-box owner earlier in January.

Shares of Microsoft hit a record high of $405.63, up 1.7%, enabling it to breach the $3 trillion market capitalization level. But it later closed at $402.56, valuing Microsoft at $2.99 trillion, just below the threshold price of $403.65 that would have kept it above $3 trillion.

Apple’s shares pared earlier gains and closed down 0.35% at $194.50, giving it a market value of $3 trillion, according to LSEG data.

Backed by its investment in ChatGPT maker OpenAI, Microsoft is widely seen as a frontrunner in the race for market dominance in the rollout of generative artificial intelligence among other tech giants, including Google owner Alphabet, Amazon, Oracle, and Facebook owner Meta Platforms.

Using OpenAI’s technology, Microsoft has rolled out newer versions of its flagship productivity software products as well as its Bing search engine, which is expected to better compete with Google’s dominant search offering.

Apple, on the other hand, is facing slowing demand for its iPhones, particularly in China – where the company is offering customers rare discounts to boost sales amid stiff competition from homegrown rivals such as Huawei Technologies.

Wall Street’s run-up to record highs will be put to the test in the coming weeks as megacap US technology-related companies begin reporting results.