Microsoft (NASDAQ:MSFT) retook the crown as the world's most valuable company Friday, closing with a market capitalization of $3.2 trillion after delivering a standout third-quarter performance.
The move pushed Apple (NASDAQ:AAPL) into second place with a valuation near $3.01 trillion. Microsoft had briefly led in early April, but Apple reclaimed the spot amid renewed trade tensions between the U.S. and China.
Microsoft shares rose about 2% on Friday, while Apple fell more than 3%, sealing the reversal.
For the March quarter, Microsoft posted earnings per share of $3.46 on $70.1 billion in revenue, topping consensus estimates. Growth in Azure cloud services, which jumped 33%, powered the beat. The company expects Azure revenue to grow 34% to 35% in constant currency in the current quarter.
Microsoft also reaffirmed plans to spend roughly $80 billion on AI infrastructure in fiscal 2025. Analysts responded positively, with Scotiabank's Patrick Colville lifting his price target to $500 from $470, citing the firm's leadership in AI.
Apple, meanwhile, beat expectations in its fiscal second quarter but warned of a $900 million tariff hit. Jefferies and Rosenblatt analysts downgraded the stock, citing risks from China exposure and elevated valuation.
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