In a groundbreaking moment, Microsoft briefly crossed the $3 trillion market valuation on Wednesday, strengthening its position as the world's second most valuable company. The stock witnessed a 1.7% surge, reaching $405.63, propelling its market capitalization just over the $3 trillion mark. Although it closed up 0.9%, ending at a record, its valuation settled at an impressive $2.99 trillion.

Microsoft momentarily surpassed Apple Inc., the pioneer in hitting the $3 trillion mark last year. However, it later dipped below Apple's valuation, with the iPhone giant closing at a market valuation of $3.01 trillion.

The ongoing battle for the top spot between Microsoft and Apple has been a captivating saga on Wall Street since the beginning of the year. Earlier in January, Microsoft briefly claimed the lead as the most capitalized stock, emphasizing the fierce competition between the two tech giants.

Microsoft's strategic investment in OpenAI, the creator of ChatGPT, has positioned the company as a frontrunner in the race for market dominance in the realm of generative artificial intelligence (AI). This places Microsoft in direct competition with other tech heavyweights, including Alphabet (Google), Amazon, Oracle, and Meta Platforms (Facebook).

Analysts believe that Microsoft's surge is fueled by "AI optimism," emphasizing the company's commitment to advancing AI capabilities. While, Apple faces challenges with slowing demand for iPhones, particularly in China.