Jan 29 Reuters Microsoft39;s early lead in artificial intelligence has the software heavyweight39;s stock market value poised to pull decisively ahead of Apple39;s over the next five years, 13 institutional investors unanimously agreed ahead of the tech titans39; quarterly results this week.

Microsoft39;s shares have surged 7 so far in 2024, recently sending its stock market value above 3 trillion and dethroning Apple as the world39;s most valuable company. As of Friday, the Redmond, Washington software maker39;s market capitalization was a few billion dollars above Apple39;s.

Asked which would be more valuable five years from now, all 13 investments strategists and portfolio managers consulted by Reuters last week said they expect Microsoft to outpace Apple.

Share prices and valuations could shift this week as Microsoft reports its quarterly results on Tuesday, followed by Apple on Thursday. In the long term, though, all the investors consulted by Reuters said Microsoft39;s recent successes in generative AI give it a powerful advantage over Apple.

Still, the race between Apple and Microsoft could turn into a race for second place, some said, citing the huge recent gains by Nvidia, whose chips have powered the AI revolution. Microsoft made early investments in ChatGPTmaker OpenAI and is incorporating generative AI technology across its business. AI is likely to benefit Microsoft39;s cloudcomputing offerings as it competes with Amazon and Alphabet in that burgeoning…