While the rivalry between Microsoft and Apple continues, the Windows giant recently took the title of the most valuable company from the iPhone giant. But only temporarily.

Microsoft overtook Apple as the world's most valuable company for the first time since 2021 after the iPhone maker's shares made a weak start to the year amid growing concerns about demand. However, this transition has not been permanent, at least for now. Apple is already ahead of Microsoft again.

Microsoft overtook Apple, but only briefly

Although Apple's shares have increased over the past year, it is difficult to compare it with Microsoft. Because Microsoft is in a sharp rise with its investment in ChatGPT developer OpenAI and being among the pioneers of productive artificial intelligence. Finally, Microsoft's shares rose by 2.5 per cent, reaching a value of $ 2.903 trillion. This market value made Microsoft the most valuable company in the world. Apple shares fell 0.3 per cent to a market value of $ 2.886 trillion.

How did this happen?

According to experts, it was inevitable for Microsoft to surpass Apple because Microsoft is growing faster and will benefit more from the productive artificial intelligence revolution. Microsoft incorporated OpenAI's technology into its suite of productivity software, a move that helped drive a rebound in its cloud computing business in the July-September quarter.

Apple, on the other hand, is grappling with weakening demand, including for its biggest source of cash, the iPhone. Demand in China, an important market, fell as the country's economy recovered slowly from the pandemic and the resurgent Huawei reduced its market share. All these factors led analysts to lower their expectations for Apple shares. Expectation is everything, if not everything, for stock markets.

Apple's shares, whose market value peaked at $3.081 trillion on 14 December, closed last year with a 48% gain. This was lower than the 57 per cent rise recorded by Microsoft.