Microsoft has reached a valuation of $3 trillion, but Apple leads

Microsoft has reached a valuation of UAH 3 trillion, but the leadership remains with Apple

For the first time in its history, Microsoft crossed the threshold of a market capitalization of UAH 3 trillion. According to a Reuters report, the company continues to occupy second place, ahead of all but Apple.

During January, Microsoft and Apple fought for the title of the most valuable company on Wall Street. Even the iPhone maker gave way to the software giant for a moment.
Microsoft shares reached a record 405.63 hryvnias, increased by 1.7%, and are now valued at 3 trillion hryvnias. But at the close of the market, their value decreased to UAH 402.56, reducing the total capitalization of Microsoft to UAH 2.99 trillion.
Apple shares fell and ended the day down 0.35% to UAH 194.50, giving it a market capitalization of UAH 3 trillion.

Reasons

Microsoft, thanks to its investments in OpenAI, the developer of ChatGPT, is considered the main competitor in the development of generative artificial intelligence, bypassing Google, Amazon, Oracle and Meta Platforms.

Thanks to OpenAI technologies, Microsoft released updated versions of its main software products, as well as Bing, a search engine that competes with Google Search, which dominates the market.

Apple, on the other hand, is facing a decline in demand for the iPhone, especially in China. The company is offering rare discounts to boost sales amid fierce competition from local manufacturers such as Huawei.

Other leaders

Meta shares also exceeded the important mark of UAH 1 trillion in market capitalization for the first time since 2021. In connection with the record growth, the value of shares increased by more than 1%, reaching UAH 390.

The last time Meta's market capitalization exceeded UAH 1 trillion was when it was still called Facebook, and its peak was about UAH 1.1 trillion.

The stock's surge is linked to a nearly 200% increase in its value in 2023, fueled by CEO Mark Zuckerberg's cost-cutting measures that have led to more than 20,000 layoffs. After stocks tumbled to six-year lows in 2022, Zuckerberg called 2023 the year of performance.

During intraday trading, Meta shares rose to UAH 396. Since the beginning of the year, the value of shares has increased by more than 10% at the time of the market close.

Investors are positive about Meta due to its desire to strengthen its position as an artificial intelligence player.

Last week, Zuckerberg announced that Meta plans to purchase 350,000 H100 GPUs from Nvidia by the end of the year. These chips are among the most powerful on the market and are essential for the development of general artificial intelligence.

Answers to Questions

Which companies have the highest market capitalization?

Currently, the largest companies by market capitalization are Microsoft and Apple. The latter reached a valuation of $3 trillion, but while the theory turned into everyday reality, Microsoft retains the status of the second most valuable company in the world.

How did Microsoft get its market capitalization of $3 trillion?

Microsoft managed to reach the $3 trillion mark thanks to the success of its investments in OpenAI and the development of generative artificial intelligence. OpenAI technologies have allowed the company to update its products, including the Bing search engine, and make them competitive in a market dominated by Google.

Why is Apple losing its position?

Apple is facing a decline in demand for the iPhone, especially in China. The company to stimulate sales, even the introduction of rare discounts, but local manufacturers, in particular Huawei, represent stiff competition. This is one of the reasons why Apple is losing its position in the market.

More Information

Microsoft: Company , a software leader founded in 1975 by Bill Gates and Paul Allen. Microsoft develops and sells a variety of software and services for computers and other devices.
Apple: An American company known for its products such as iPhone, iPad, Mac and Apple Watch. Apple develops hardware and software and provides services related to these devices.
OpenAI: A scientific and technical team and company founded to develop artificial intelligence and its applications. Their technologies are used to create and improve various intelligent systems.
Google: A company that specializes in finding and using information from the Internet. Google provides many services, including Google search, Gmail email, and Google Drive online storage.
Huawei: A Chinese company that offers a variety of electronic devices, including smartphones, tablets, and other gadgets. Huawei is one of Apple's main competitors in the smartphone market.

Microsoft has reached a valuation of 3 trillion but Apple continues to lead