Prediction: By the End of 2027, Microsoft Will Be More Valuable Than Apple
2026-10-05 14:30
•David Jagielski, Cpa •The Motley Fool
••••• •• Axe Cap view
Why Microsoft Could Overtake Apple by 2027
Microsoft’s AI-driven growth and better valuation point to long-term outperformance versus Apple.
Microsoft’s current AI momentum, especially with Microsoft 365 Copilot and its cloud segment Azure growing over 40%, shows clear revenue upside that the market is underestimating. While Apple remains a giant, its premium valuation and uncertainties around new leadership and foldable iPhone strategy make it harder to justify the $4.9 trillion market cap. For South African investors, this dynamic is reflected in USD/ZAR pressures—tech gains in the US can strengthen the dollar and put rand pressure, but a pivot to Microsoft’s growth story might temper volatility. Locally, Prosus and Naspers could benefit indirectly if global tech valuations recalibrate towards companies with strong cloud and AI businesses. Still, if Apple surprises with a successful new product cycle or stabilises leadership, this view could be off. this is just our opinion and not financial advice
Trim Apple exposure and shift selectively into global tech via USD/ZAR hedges or South African proxies like Prosus, which have meaningful Microsoft and cloud exposure. Avoid large bets until Apple’s strategy clarifies.
- USD/ZAR
- Prosus
- Naspers
- Apple executes well on foldable phones or new leadership
- Global tech rotation stalls, hurting Microsoft growth expectations
6/10
The article predicts Microsoft will surpass Apple in market valuation by end of 2027. Microsoft's AI opportunities, particularly in Microsoft 365 Copilot (30 million paid seats) and Azure growth (43%), are underrated by the market. With a lower P/E ratio of 29x versus Apple's 38x, Microsoft presents better value. Apple faces uncertainty with new leadership and foldable phone strategy, making it riskier despite its current $4.9 trillion valuation versus Microsoft's $3.9 trillion.
Our take is based on reporting first published by The Motley Fool.