Microsoft's AI Breakthroughs to Surpass Apple in Five Years

Microsoft's recent strides in artificial intelligence (AI) have positioned the tech giant to surpass Apple in stock market value within the next five years, according to a consensus among 13 institutional investors. 

The unanimous agreement precedes the quarterly results of both companies this week, with high anticipation for Microsoft's performance after its shares surged by 7% in 2024, pushing its market capitalization beyond US$3 trillion and displacing Apple as the world's most valuable company.

Analysts unanimously predict Microsoft’s long term outperformance against Apple, attributing Microsoft's edge to its early investments in generative AI, particularly through collaborations with OpenAI, as reported by Reuters. These advancements are considered crucial in strengthening Microsoft's position across various sectors, including cloud computing, gaming, and enterprise software, where AI integration offers a competitive advantage against industry rivals like Amazon and Alphabet.

While Apple has integrated AI into product functionalities, such as camera enhancements, questions persist about its broader AI roadmap, with investors seeking clarity in the upcoming quarterly report. Apple's recent market endeavors, such as the Vision Pro mixed-reality headset, represent ambitious ventures amid evolving market dynamics and intensifying competition.

Microsoft's 57% rally in 2023 reflects investor confidence in its strategic direction, endorsed by recommendations from fifty Wall Street analysts advocating for buying Microsoft shares. In contrast, Apple faces mixed analyst sentiments, with concerns over lackluster iPhone sales leading to cautious ratings, including a recent downgrade by Barclays.

In Mexico, concerning browser market share, one of the products enhanced by AI, Microsoft’s Edge holds 12.34%, while Apple’s Safari comes in at 6.33%.