Microsoft becomes most valuable company with $3.125 trillion market cap

Microsoft ended the week with a market capitalization of $3.125 trillion, the highest for any company so far. The company's market value tops the previous record set by Apple, which reached $3.09 trillion in July. Apple ended Friday with a market cap of $2.916 trillion.

Microsoft is also the first American company to close with a market cap (market capitalization) of more than $3.1 trillion. Microsoft stock closed the week at $420.55. Over the past 12 months, its shares have surged 60 per cent, largely due to enthusiasm for its artificial intelligence (AI) software.

The company last month reported quarterly revenue and profit ahead of Wall Street forecasts, and management noted the company's AI benefits.

"We have moved from talking about AI to implementing AI at scale," Microsoft CEO Satya Nadella said in a statement at the time.