Microsoft Surpasses Apple to Become World's Most Valuable Company

On May 4, 2025, Microsoft overtook global tech giant Apple in terms of market capitalization. Microsoft has also surpassed Nvidia, establishing its dominance once again in the tech industry. With a market cap of $3.235 trillion, Microsoft became the world’s most valuable company, pushing Apple to second place with a market cap of $3.07 trillion.

This milestone was achieved on May 3, 2025, when Microsoft set a new record by reaching $3.235 trillion in market cap. According to The Information newsletter, Microsoft and Apple held the first and second positions respectively last week, while Nvidia stood third with a market cap of $2.76 trillion.

Microsoft’s surge is attributed to its strong cloud computing and artificial intelligence (AI) strategies. The company reported impressive financial results for the March quarter, exceeding analysts’ expectations. CEO Satya Nadella emphasized that demand for cloud and AI continues to rise. Microsoft’s stock outperformed Apple’s this year, reflecting growing investor confidence.

Meanwhile, Apple has been under pressure due to new tariffs, which have led to an 18% decline in its stock price. The ongoing tariff war poses a threat to Apple, significantly impacting its market value. CEO Tim Cook stated that if the situation doesn’t improve, the company might incur an additional $900 million in expenses this quarter.

According to Dow Jones Market Data, Apple has seen the largest market value drop among major tech firms in early 2025, with only Tesla performing worse, falling by 29%.