Microsoft first surpassed Apple to become the world’s most valuable company by market capitalization in 2021.
Microsoft overtook Apple in November 2021 as investors weighed supply-chain pressures affecting Apple and continued enthusiasm for Microsoft’s cloud and enterprise businesses. The ranking was determined by multiplying each company’s share price by its shares outstanding.
Microsoft’s valuation had changed dramatically since its transformation from a personal-computer software leader into a broader technology company. Windows and Office remained important, while Azure, business software, gaming, and subscriptions became major parts of the story investors followed.
The lead did not remain permanently fixed. Apple and Microsoft have alternated near the top as share prices, interest rates, earnings expectations, and new technology trends changed. “Most valuable” in this context means highest market capitalization, not highest revenue, profit, assets, or brand value.