Microsoft has officially dethroned Apple to become the world’s most valuable publicly traded company. This market cap shift is driven by strong growth in AI and cloud services, leaving Apple struggling with slowing demand and innovation challenges. The tech giant’s strategic focus on AI and enterprise solutions has propelled its valuation to a historic high. Microsoft’s rapid expansion of its Azure cloud platform, coupled with successful integration of AI into Office and Azure products, has allowed the company to solidify its lead. Meanwhile, Apple’s recent struggles with slowing iPhone demand and increasing regulatory pressures, have contributed to their market cap decline.