The well-known American tech behemoths Apple and Microsoft continue to rule as two of the biggest businesses in the world based on market capitalization. This can be linked to the sharp increase in tech stocks that was caused by the growing fascination with artificial intelligence.
As the most valuable firm in the world, Apple made history in the previous month when it became the first company to have a market capitalization of $3 trillion. This achievement was made possible by the company’s development into new markets and upbeat predictions for gradual increases in U.S. interest rates.
In contrast, Microsoft’s fiscal fourth-quarter sales exceeded Wall Street expectations, largely due to impressive growth in its cloud computing and office software businesses.
However, the company’s share price fell by 1.4 percent in July when it unveiled a spending plan to match the soaring demand for AI services. Microsoft’s market capitalization was $2.49 trillion as of July 31.
Apple and Microsoft were not the only winners from the rise in tech equities. The market’s mood in July was greatly buoyed by Alphabet, Meta, and Intel‘s strong quarterly reports.
Notably, due to a favorable revenue projection and strong growth in advertising revenue, Meta’s market capitalization increased by more than 10% in the same month.
We retain our opinion that a new tech bull market has started this year, with the AI Gold Rush evoking a “1995 Moment” similar to the early days of the Internet rather than a “1999/2000 Bubble Moment,” according to Wedbush analyst Dan Ive, who was quoted by Reuters.
Also, Read Apple Wants to Maintain Stable iPhone Shipments Despite Turbulence in 2023
Refinitiv data also shows that 69% of large and mid-cap U.S. companies have surpassed analysts’ Q2 earnings estimates, with the tech sector accounting for 82% of these positive results.
