Microsoft (MSFT) has closed the gap on Apple (AAPL) in the race for the world’s most valuable company by market cap. Since the Trump-tariff induced market crash, Apple Inc. has shed millions in value due to being heavily impacted by the new economic policy. While Microsoft has also suffered, the crash has allowed it to get closer to the top of the pile in terms of market capitalization.
Early Thursday morning, the Windows maker regained its position as the world’s most valuable company amid a four-day selloff for the iPhone manufacturer. Currently, Apple is back in the lead, but the gap between the two tech giants is now less than $100 million. The recent market collapse caused Apple Inc. to fall out of the $3 trillion market cap club. The broader market has been under pressure following the announcement of Trump’s sweeping tariffs, causing a 13% drop in the tech-heavy Nasdaq Composite. Apple’s reliance on China for manufacturing, plus the fact that other countries like India, Vietnam, and Brazil are facing higher tariff rates, has killed the company’s shares and market cap.
Other big US stocks have also been hit, including Amazon (AMZN) and Nvidia (NVDA). Tech is rebounding on Thursday, with Trump announcing a 90-day tariff pause.
Microsoft has long been viewed as a mega-cap stock with immense potential to surge. Indeed, the artificial intelligence demand surge that dominated the market this year is expected to benefit share price. Moreover, its entry into a new market could only add to the stock’s ceiling this year.
Furthermore, there is still a steady stream of bullishness surrounding the Windows developer. Despite its underperformance, Microsoft (MSFT) has gotten a $510 target and bullish rating amid a key growth plan. Indeed, RBC Capital recently expressed its belief in the stock.