Microsoft Achieves $4 Trillion Milestone
Microsoft has officially entered the prestigious $4 trillion market cap club, marking a significant shift in the technology landscape. This surge came after the company’s shares rose over 5% on Thursday, following the release of earnings that exceeded analysts’ expectations.
This achievement makes Microsoft the second company ever to surpass the $4 trillion valuation, following Nvidia, which briefly crossed that threshold earlier this month.
Historic Value Changes
The tech giant’s valuation journey has been remarkable. In January 2024, Microsoft became the second most valuable company worldwide when it reached a $3 trillion market cap, just behind Apple. Apple had achieved the landmark of being the first U.S. corporation to hit a $3 trillion market cap in the summer of 2023.
AI Boom and Financial Performance
The current financial landscape reveals a dramatic transformation driven by the ongoing AI boom. Microsoft and Nvidia are now at the forefront, with Microsoft’s Azure cloud services playing a pivotal role in its recent success. In fiscal 2025, Microsoft’s revenue from Azure and other cloud services soared past $75 billion, reflecting a 34% increase from the previous year. For the first time, Microsoft disclosed Azure’s revenue figures separately, highlighting its importance as a growth engine.
- Microsoft experienced an 18% revenue growth overall, the fastest rate in over three years.
- In contrast, Apple has slipped to a market cap of approximately $3.2 trillion, with its stock down 17% this year.
- Investors are increasingly concerned that Apple is falling behind in the AI competition.
Nvidia’s Performance and Future Reports
Nvidia has showcased the strongest performance among megacap tech stocks in 2025, climbing 33% year-to-date. The company’s GPUs are essential for the large language models that power various platforms, including those operated by Microsoft, OpenAI, Google, and Meta. Nvidia’s next earnings announcement is anticipated in late August.
As Microsoft seeks to maintain its growth momentum, all eyes are also on Apple to see if it can close the gap.
