Microsoft Reclaims Market Crown as Apple Shares Slide

Apple has slipped behind Microsoft in the position as the world’s most valuable public company, as intensifying fears over U.S. tariffs sent Apple shares tumbling 23% over the past four trading sessions. 

By Tuesday’s close, Microsoft’s market cap had climbed to $2.64 trillion, overtaking Apple’s $2.59 trillion valuation. Both companies were hovering near the $3 trillion mark just weeks ago, but global trade uncertainty has rapidly eroded investor confidence, especially in tech.

The trigger for this correction has been U.S. President Donald Trump’s sweeping decision to implement new tariffs on imports from over 100 countries. 

The Nasdaq, dominated by tech giants, has dropped 13% in just four days. Apple, heavily exposed to Chinese manufacturing and supply chains, has been hit disproportionately. Analysts now estimate that the retail price of the upcoming iPhone 16 Pro Max could spike by as much as $350 in the U.S., that’s if supply disruptions and component costs escalate further under the new tariff regime.

While Microsoft isn’t immune to market turbulence—it issued cautious revenue guidance earlier this year—it is considered more shielded from immediate tariff shocks. 

What Does This Mean for Me?

Analysts singled out Microsoft as one of the few software giants less vulnerable to global trade instability, citing its diversified product base and limited hardware exposure. Earlier in 2024, Microsoft briefly held the top spot before Apple regained it. With this latest shakeup, Microsoft has once again shown how steady fundamentals and a more defensible business model can win out when market sentiment turns risk-averse.