Microsoft has achieved a remarkable milestone by becoming the world’s most valuable publicly traded company, with a market capitalization of $2.89 trillion. This achievement has displaced long-time rival Apple from the top spot, as Apple’s market cap slightly fell to $2.87 trillion.

Microsoft’s ascent to this position can be largely attributed to its strategic investment in the field of artificial intelligence (AI). The company committed a substantial $10 billion investment in Sam Altman’s OpenAI, a move that has paid off handsomely.

Recently, Microsoft showcased its impressive AI capabilities at an event in San Francisco, garnering praise from developers and analysts alike. The momentum surrounding Microsoft’s mature AI products has been encouraging, as reported by CNBC.

The rise of artificial intelligence has captivated investors, contributing significantly to the NASDAQ-100’s impressive 54% growth over the last year. Many analysts predict that the AI boom will continue well into 2024, with AI being a dominant theme throughout the year.

In contrast, Apple faces several challenges in 2024. The tech giant is embroiled in a public legal battle that has led to the suspension of US sales of its Apple Watch. Additionally, Apple has suffered three stock downgrades in January, with the first downgrade by UK bank Barclays resulting in a significant loss of market capitalization exceeding $100 billion in a single day.

Furthermore, Apple’s difficulties in the Chinese market are expected to persist, as Chinese government officials are prohibited from using Apple devices, and domestic competitors like Huawei are gaining traction. Sales of the iPhone 15 in China have been sluggish, resulting in a 30% year-on-year decline in the country, according to Jefferies analysts.

In conclusion, Microsoft’s strategic investment in AI has propelled it to the forefront of the tech industry, surpassing Apple as the world’s most valuable public company, while Apple grapples with various challenges in 2024.