Microsoft’s recent successes in generative AI give it a powerful advantage over Apple, especially in the long term
Microsoft’s early lead in artificial intelligence has positioned the software giant to pull ahead of Apple in market shares over the next five years. The company’s recent surge in shares, reaching a market value above $3 trillion and surpassing Apple, has solidified its position as the world’s most valuable company. All 13 investment strategists and portfolio managers consulted by Reuters are in unanimous agreement that Microsoft will outpace Apple in the coming years, thanks to its successes in generative AI.
Investors believe that Microsoft’s recent advancements in generative AI technology provide it with a significant advantage over Apple in the long term. Microsoft’s early investments in ChatGPT-maker OpenAI and the incorporation of generative AI technology across its business, particularly in cloud-computing offerings, are expected to propel the company ahead of its competitors. With AI benefitting Microsoft’s various business segments, including cloud computing, gaming, and enterprise software, the company is well-positioned to maintain its lead in the market.
While Apple has been quietly incorporating AI into product functions, such as enhancing iPhone photography, investors are eager to hear more about the company’s AI plans. However, concerns remain about Apple’s reliance on the mature iPhone market and its ability to compete in the AI arms race. With Microsoft’s significant lead in generative AI and the potential for new market players like Nvidia, the race for the top spot could intensify, making it crucial for Apple to articulate its strategy in the AI space.
