At its annual developers conference event on June 10, 2024, Apple CEO Tim Cook made a significant announcement that would change the tech industry’s landscape. During his keynote address, he revealed that Apple had surpassed Microsoft to become the most valuable company in the world, with a market cap of $3.3 trillion compared to Microsoft’s $3.2 trillion.
The news sparked investor confidence and led to a more than 7% surge in share price for Apple. This upward trend continued into the next day, with shares climbing by around 4% at the opening of trading. The catalyst behind this growth was Apple’s emphasis on artificial intelligence (AI) during its keynote address.
Apple unveiled several innovative features related to AI, including the integration of generative AI in its native apps and devices. These new features, dubbed Apple Intelligence, are expected to drive consumer interest in purchasing new iPhones and potentially trigger an “iPhone super cycle.” Analysts from Morgan Stanley, Evercore, and Bank of America noted that these new AI features would be a significant game-changer for Apple’s business model and could lead to increased revenue and market share in the long run.
However, competition for the top spot in market valuation is fierce, and Microsoft is not far behind. Despite being surpassed by Apple as the most valuable company in the world for now, Microsoft is expected to benefit from Apple’s AI initiatives as well. Apple announced a feature that would offer OpenAI’s large-language models to users, with more models to be added over time. Given Microsoft’s significant investment in OpenAI and the growth of its Azure cloud services due to OpenAI model adoption, Microsoft stands to gain from Apple’s AI advancements.
In conclusion, Apple’s announcement at its annual developers conference event has set it up as a leader in the tech industry when it comes to artificial intelligence integration across its range of devices. The innovative features announced by Apple are expected to drive consumer interest and potentially trigger an “iPhone super cycle,” while also benefiting Microsoft through increased competition for market dominance.
