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Key Highlights on Apple and Microsoft
Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) rank as the second-largest and third-largest stocks by market cap, respectively. Despite a sustained rivalry for the largest market cap, both companies have faced challenges in the artificial intelligence (AI) sector, allowing Nvidia to rise to the top. Apple reported a net sale of $409 billion for the trailing 12 months ending June 28, a 6% increase from the previous year. However, profits fell from $102 billion to $99 billion due to rising costs.
Microsoft, more reliant on software, saw a 15% year-over-year increase in revenue, totaling $282 billion for fiscal 2025, with net income climbing to $102 billion. Its stock appreciated 22% over the past year, indicating stronger growth compared to Apple. Both companies maintain a P/E ratio of approximately 36, raising questions about their relative positions in the AI market.
As both companies grapple with investor expectations in AI, current assessments suggest Microsoft might be a more favorable choice for investment due to its faster revenue and profit growth.
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