Apple and Microsoft, two prominent tech giants in the United States, continue to dominate as the world’s largest companies based on market capitalization. This is largely due to the significant surge in tech stocks, driven by the increasing interest in artificial intelligence.
Last month, Apple, known as the most valuable company globally, achieved a historic milestone by becoming the first corporation to reach a $3 trillion market capitalization. This accomplishment was supported by the company’s expansion into new markets and optimistic expectations regarding moderate U.S. interest rate increases under the leadership of Tim Cook.
On the other hand, Microsoft surpassed Wall Street’s revenue projections for its fiscal fourth quarter, primarily due to remarkable growth in its cloud computing and office software sectors. However, the company’s share price experienced a 1.4 percent decline in July after unveiling a spending strategy to meet the growing demand for AI services. As of July 31, Microsoft’s market capitalization stood at $2.49 trillion.
The surge in tech stocks is not limited to Apple and Microsoft. Strong quarterly earnings from Alphabet, Meta, and Intel significantly boosted overall market sentiment in July. Particularly, Meta’s market capitalization surged by more than 10 percent during the same month, driven by a positive revenue outlook and robust growth in advertising revenue.
According to Wedbush analyst Dan Ive, “We maintain our belief that a new tech bull market has commenced this year, with the AI Gold Rush reminiscent of a ‘1995 Moment’ akin to the early days of the Internet rather than a ‘1999/2000 Bubble Moment,” as cited by Reuters.
Furthermore, Refinitiv data indicates that 69 percent of large and mid-cap U.S. companies have outperformed analysts’ Q2 earnings projections, with the tech sector contributing to 82 percent of these favorable outcomes.
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