Microsoft leapfrogs Apple as firms race to develop AI
TECH giant Microsoft leapfrogged Apple to become the world’s largest listed company – worth close to £2.3trillion.
As the two battle it out in the race to develop Artificial Intelligence (AI), Microsoft rose around 1pc in early trading in New York.
With Apple dipping, it overtook the iPhone maker to become the most valuable company in the world by market capitalisation.
Microsoft is up sharply since last year thanks to its early lead in generative AI through investing in ChatGPT-maker OpenAI.
Danni Hewson, head of financial analysis at AJ Bell, added: ‘For years it was viewed by many investors as a bit of a tech dinosaur.
‘There’s been an unmistakable sea change. Momentum and excitement have returned.
‘AI has set markets ablaze and with so many potential beneficiaries and opportunities, there’s a lot of money to be made.’
Back in London, the FTSE 100 fell 1pc, or 75.17 points, to 7576.59 and the FTSE 250 dipped 0.9pc, or 172.15 points, to 19,107.93. Cyber security firm Darktrace rose 9pc, or 30.3p, to 365.9p after it hiked sales and earnings expectations and forecast strong demand for AI products.
The Cambridge firm said it was in a ‘strong position’ to capitalise on its cyber security tools. It reported sales growth of 27pc for the six months to December 31.
The update comes as boss Poppy Gustafsson waits to be questioned in the US criminal trial of British entrepreneur Mike Lynch, who she worked with at software company Autonomy.
Lynch has been accused of falsely inflating the value of Autonomy before it was sold to US tech giant HP in 2012 for £8bn. He denies the allegations.
Gustafsson may be quizzed over deals she was involved in while working in Autonomy’s finance department between 2009 and 2011, The Times reported. Lynch’s trial is due to start on March 18.
Miner Anglo American rose 0.9pc, or 16.6p, to 1839.8p, buoyed by higher metal prices.
There are increasing reasons why now is a good time to investment in copper prices such as
Antofagasta, according to analysts at RBC, who said it should benefit from limited supply pushing up prices. Antofagasta rose 0.3pc, or 5p, to 1588p.
Review website Trustpilot climbed to the top of mid- cap index following a bumper update.
The FTSE 250 firm expects revenues to be up by 17pc to £138m in 2023 with bookings rising 16pc to £153m.
It also launched a share buyback worth £ 20m. Shares jumped 12.3pc, or 17.9p, to 163.5p.
Exhibitions organiser Informa expects to make up to £965m profit this year, around £120m more than it made in 2023.
It has also agreed to merge its digital businesses with the US firm Tech Target. Shares slid 2.5pc, or 19.6p, to 765.6p.
Advertising giant WPP fell 4pc, or 30.4p, to 729p after analysts at UBS downgraded their rating on the stock over concerns that clients will continue to reduce spending on ads.
Property firms London Metric and LXi have agreed to merge in a tie-up that will see it become the UK’s fourth-largest real estate investment trust.
London Metric rose 1.2pc, or 2.2p, to 186.3p while LXi was up 0.5pc, or 0.5p, to 103.5p.
Robert Walters – up 2.4pc, or 10p, to 420p – axed 220 roles between October and December as it saw its fees decline 10pc to £91.4m. But it expects to have made £20.5m of profit in 2023.
Estate agent Savills is pinning its hopes on business improving this year as market uncertainty fades. Shares increased 0.5pc, or 5p, to 981p.