Microsoft Surpasses $4 Trillion Market Cap: A New Milestone
After market close, Microsoft achieved a remarkable market capitalization of over $4 trillion, making it the second company ever to join the "$4 trillion club" after NVIDIA, as reported by CNBC.
This growth came on the heels of a quarterly report that exceeded expectations, with stocks rising by 8%, pushing the company's market value to around $4.1 trillion. Should this trend continue, Microsoft will officially join NVIDIA, which first hit this milestone in early July.
Microsoft reported an 18% increase in revenue, the highest growth rate in over three years, driven by the expansion of its Azure cloud business. For the first time, Microsoft disclosed Azure's dollar revenue, stating that it, along with other cloud services, surpassed $75 billion in the fiscal year 2025, a 34% increase from the previous year. Since the beginning of the year, Microsoft shares have risen by 22%, outperforming the S&P 500 index.
NVIDIA and Microsoft have both profited immensely from the AI boom, surpassing Apple in market value. Apple now ranks third with a valuation of $3.2 trillion, having seen a 17% drop in shares this year amid investor fears that it is lagging in AI technology. NVIDIA's graphics cards are foundational to the large language models used by Microsoft, OpenAI, Google, and Meta. In 2025, NVIDIA's stocks rose by 33%, and the company will release its new financial report at the end of August.
