Apple declines, Microsoft regains the throne of the world's most valuable

After just four volatile trading sessions, Apple shares fell a whopping 23%, causing a significant drop in market capitalization and helping Microsoft once again rise to the position of the world's most valuable public company.

As of the close of trading on April 8, Microsoft reached a capitalization of 2.64 trillion USD, surpassing Apple with 2.59 trillion USD. This is the second time this year that Microsoft has regained the No. 1 position, after surpassing Apple in early 2024.

The main reason for Apple's decline comes from a wave of concerns about President Donald Trump's comprehensive tax plan.

The new policy is expected to affect imports from more than 100 countries, raising fears of inflation and the risk of a global recession.

The US's largest electronic stock exchange - Nasdaq - has fallen by 13% in just the last 4 sessions, showing the market's negative reaction to this information.

While the entire tech market has been affected, Apple appears to be the most vulnerable name. The reason is that the iPhone maker is highly dependent on the supply chain in China, an area that could be severely affected by the new tariffs.

According to forecasts from analysts at the world's largest and most prestigious financial group UBS (Switzerland) announced on April 7, the price of the iPhone 16 Pro Max line could increase by up to $350 in the US market if the new tariffs come into effect. This will not only affect sales but also strongly impact investor sentiment about Apple's growth prospects.

In contrast to Apple, Microsoft seems to be standing firmer in the current wave of turmoil.

Despite announcing disappointing revenue guidance in January this year, Microsoft was recently classified in a report by analysts at US-based financial and investment banking firm Jefferies as being among the “better protected” companies against tariff-related risks.

This advantage comes from the software firm's global operating structure and lower dependence on vulnerable supply chains.

Before the recent sell-off, Apple, Microsoft and Nvidia were all valued at more than $3 trillion, a historic milestone in the stock market.

However, the current situation shows that investors are re-valuing large technology stocks, in the context of global trade policy facing many unpredictable fluctuations.