Apple Faces Competition from Microsoft and Amazon, May Be Surpassed in Five Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 23 2026
0mins
Should l Buy MSFT?
Source: Fool
- Intensifying Market Competition: Apple, valued at $3.6 trillion, is at risk of being surpassed by Microsoft ($3.4 trillion) and Amazon ($2.5 trillion) over the next five years due to a lack of innovation, indicating vulnerability in its market position.
- Slowing Revenue Growth: With a year-over-year revenue growth rate of 10%, below market averages, Apple’s aggressive stock buyback program achieves about 10% quarterly EPS growth, which may not be sufficient to fend off rapidly advancing competitors.
- Microsoft's Competitive Edge: Microsoft is leveraging its Azure cloud computing service and a 27% stake in OpenAI to consistently deliver mid- to high-double-digit EPS growth, positioning it to potentially surpass Apple in the next five years, showcasing its strength in the AI sector.
- Semiconductor Industry Outlook: Taiwan Semiconductor expects a 25% CAGR through 2029, while Broadcom anticipates 100% year-over-year growth for its custom AI chips in Q1; if these growth rates are maintained, both companies could surpass Apple within five years.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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