Microsoft Hits $3 Trillion Market Value For The First Time (Photo by BoliviaInteligente on Unsplash)

Microsoft reached a historic milestone on Wednesday as its market value surpassed $3 trillion for the first time. The software giant is the second company to hit this milestone after Apple. Microsoft stock was up 1.5 percent on January 24, hitting more than $404 per share.

Microsoft”s stock has been rallying in recent months. This comes as the company is maintaining its leading position in the artificial intelligence (AI) race. The latest achievement indicates investor confidence in Microsoft”s AI advancements. In January 2022, Apple became the very first publicly traded company in the world to cross $3 trillion in market capitalization. Later, the market cap figure steadily decreased. In June 2023, the iPhone maker again made history with a market value over $3 trillion.

Microsoft has made significant growth in the generative AI segment. This is mainly due to the company”s partnership with OpenAI, the creator of ChatGPT. Microsoft has unveiled numerous products with generative AI capabilities since the arrival of OpenAI. In 2023, Microsoft extended its long-term partnership with OpenAI through a “multiyear, multibillion dollar investment.” “We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Microsoft CEO Satya Nadella on that occasion. In the generative AI sector, Microsoft is mainly competing against Google, Meta, and Amazon.

On the other hand, Apple, another company in the $3 trillion club, is currently facing slowing demand for its iPhones. Apple is facing this situation, mainly in China. Reuters earlier reported that Apple is offering a rare, almost never-seen-before discount on its iPhone models in China due to competition.

According to a Reuters report, Microsoft shares gained nearly 57 percent last year and are up 7% in 2024. On the other hand, Apple”s stock rose by 48 percent in 2023 and is up about 1 percent year-to-date.