New Delhi: Microsoft, the world’s leading tech company, has created history by achieving a record-breaking market capitalization of $3.125 trillion, surpassing its rival Apple and becoming the first American company to cross the $3.1 trillion mark. The company’s phenomenal growth is largely driven by its investments and innovations in Artificial Intelligence (AI), which have enabled it to deliver cutting-edge products and services to its customers.
How Microsoft beat Apple
Microsoft ended the week with a market cap of $3.125 trillion, which is the highest for any company so far. The company’s market value tops the previous record set by Apple, which reached $3.09 trillion in July 2023. Apple ended Friday with a market cap of $2.916 trillion, trailing behind Microsoft by more than $200 billion.
According to Barron’s report, Microsoft’s stock closed the week at $420.55, up 2.4% from the previous day. The company’s shares have increased by 60% in the last 12 months, outperforming the S&P 500 index, which rose by 25% in the same period.
The role of AI in Microsoft’s success
One of the main reasons for Microsoft’s impressive performance is the enthusiasm for its AI software, which has been integrated into various aspects of its business, such as cloud computing, gaming, productivity, and social media.
The company last month reported quarterly revenue and profit ahead of Wall Street forecasts, and management focused on the company’s AI gains. Microsoft CEO Satya Nadella said in a statement at the time, “We have moved from talking about AI to implementing AI at scale.”
Some of the examples of Microsoft’s AI initiatives include:
- Azure, its cloud computing platform, which offers a range of AI services and tools for developers and enterprises.
- Xbox, its gaming console, which uses AI to enhance the gaming experience and create realistic graphics and sounds.
- Office 365, its productivity suite, which leverages AI to improve collaboration, communication, and creativity among users.
- LinkedIn, its social media network, which uses AI to personalize content, recommendations, and ads for its members.
- Cortana, its digital assistant, which uses AI to provide voice and text-based interactions and assistance to users.
Satya Nadella’s 10-year journey as Microsoft’s CEO
Another factor that contributed to Microsoft’s success is the leadership and vision of Satya Nadella, who recently completed his tenth year as the CEO of Microsoft. Nadella, who is of Indian origin, took command of the company in 2014 when it was struggling to compete with the likes of Apple, Google, and Amazon.
Nadella transformed the company’s culture and strategy, by focusing on cloud computing and artificial intelligence and making the company more customer-centric and innovative. He also made several strategic acquisitions, such as LinkedIn, GitHub, and Nuance, to expand the company’s reach and capabilities.
Under Nadella’s guidance, Microsoft has become a center of attraction for everyone, from investors to customers to employees. Nadella is widely regarded as one of the most influential and respected CEOs in the tech industry.