Apple & Microsoft two biggest companies by market capitalisation

Apple and Microsoft, the prominent U.S. tech giants, continue to dominate as two of the world's largest companies by market capitalization. This can be attributed to the substantial surge in tech stocks, fueled by the escalating interest in artificial intelligence.

In the previous month, Apple, holding the title of the globe's most valuable company, achieved a historic milestone of becoming the first corporation to attain a $3 trillion market capitalisation. The company's expansion into new markets and optimistic expectations regarding moderate U.S. interest rate increases contributed to this milestone.

In contrast, Microsoft surpassed Wall Street projections for its fiscal fourth-quarter revenue, primarily driven by remarkable growth in its cloud computing and office software sectors. However, the company experienced a 1.4 percent decline in its share price during July after unveiling a spending strategy to meet the rising demand for AI services. As of July 31, Microsoft's market capitalisation stood at $2.49 trillion.

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The surge in tech stocks did not exclusively benefit Apple and Microsoft. Strong quarterly earnings from Alphabet, Meta, and Intel significantly boosted overall market sentiment in July. Notably, Meta's market capitalisation surged by more than 10 per cent during the same month, thanks to a positive revenue outlook and robust growth in advertising revenue.

Reuters quoted Wedbush analyst Dan Ive as stating, "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."

Furthermore, according to Refinitiv data, 69 per cent of large and mid-cap U.S. corporations have outperformed analysts' Q2 earnings projections, with the tech sector contributing to 82 per cent of these favorable outcomes.

(Inputs from Reuters)

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