Apple vs. Microsoft: Which Is the Better Artificial Intelligence Stock to Buy in 2025?

Core Viewpoint - The competition between Apple and Microsoft in the AI sector is intensifying, with both companies investing heavily in AI strategies that could determine their future market valuations [1]. Group 1: Microsoft’s AI Strategy - Microsoft has 1.6 billion devices running Windows, providing a substantial customer base for its AI initiatives, particularly through its Copilot service [2]. - Copilot is integrated within Microsoft Office products, allowing users to access AI tools seamlessly in their daily workflows, which could lead to significant synergies and efficiencies [3]. - If Microsoft successfully develops Copilot into a subscription service, it could generate billions in revenue and create long-term growth opportunities [4]. Group 2: Apple’s AI Strategy - Apple has 2.2 billion devices globally, presenting a significant opportunity for AI service offerings, although its AI strategy has been slower to roll out compared to Microsoft [5]. - Upcoming AI features, such as enhancements to Siri, could drive user upgrades to newer devices, serving as a catalyst for growth [6]. - Analysts suggest that Apple could charge around $20 per month for advanced AI features, targeting a more affluent customer base that may be more willing to pay for enhanced functionality [7]. Group 3: Investment Considerations - Apple outperformed Microsoft in stock performance in 2024, and this trend may continue as Apple adopts a cautious approach to AI, allowing for better evaluation of user needs [8]. - Microsoft faces challenges in justifying a $30 monthly subscription per user for businesses, while Apple could benefit from encouraging device upgrades [9]. - Both companies stand to gain from AI-related revenue, but Apple may have a more straightforward path to growth compared to Microsoft, making it a potentially better investment in the AI space [10].