Microsoft overtook General Electric in 1998 to become the world’s most valuable company by market capitalization.
The change reflected Microsoft’s rapid growth during the personal-computer era. Its Windows operating system and Office software held powerful positions in business and consumer computing, while investors assigned the company a high growth valuation.
General Electric was then one of the world’s most diversified industrial corporations, with businesses spanning appliances, power systems, aviation, finance, and media. Its size and reputation made it a frequent market-value benchmark before technology companies took the lead.
Market-cap rankings can change quickly because they depend on share prices. They do not necessarily indicate which company has the most employees, factories, revenue, or physical property. Microsoft later reclaimed the top position in the 2010s and became a recurring market-cap leader.