Microsoft Set To Leapfrog Apple In Market Value In The Next Five Years, Investors Predict

In a recent development, 13 institutional investors have unanimously predicted that Microsoft Corp. MSFT will outpace Apple Inc. AAPL in terms of stock market value over the next five years.

What Happened: Microsoft’s shares have surged by 7% in 2024, propelling its market value above $3 trillion and surpassing Apple as the world’s most valuable company, reported Reuters on Monday. As of Friday, Microsoft’s market capitalization was slightly higher than Apple’s.

All 13 investment strategists and portfolio managers consulted by Reuters last week believe that Microsoft will outperform Apple in the next five years, despite potential share price and valuation fluctuations following the quarterly results of both companies.

See Also: If You Invested $1000 In Apple When The iPad Was Launched 14 Years Ago, Here’s How Much You’d Have Today

Microsoft’s recent strides in generative AI are seen as a significant advantage over Apple in the long term. However, some investors suggest that the race between the two tech giants could turn into a second-place race, with Nvidia Corp. NVDA emerging as a strong contender.

Why It Matters: Microsoft’s rise in AI has been a focal point in recent discussions. The company’s AI advancements have been viewed as a key factor in its $3 trillion market valuation in January 2024. Microsoft’s shares surged by 57% in 2023 due to its AI leadership.

On the other hand, Apple has been incorporating AI into its product features, such as improving iPhone photography. However, the company’s reliance on the iPhone, a mature market, and its unclear strategy in the AI race have raised concerns among investors.

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