Microsoft has surged into the exclusive $4 trillion market cap club, following a post-earnings rally that sent its shares soaring 8% in after-hours trading. The tech giant’s market value climbed to approximately $4.1 trillion, placing it alongside chipmaker Nvidia, which crossed the same threshold earlier this month. This marks a new milestone in Microsoft’s ascent, underscored by accelerating demand for cloud computing and artificial intelligence.
The company’s latest quarterly results revealed an 18% year-over-year revenue increase—the strongest growth rate Microsoft has recorded in over three years. This momentum was largely driven by its Azure cloud platform. For the first time, Microsoft disclosed Azure’s revenue in dollar terms, announcing that Azure and other cloud services collectively generated over $75 billion in fiscal 2025, representing a 34% increase from the previous year.
At the close of regular trading on Wednesday, Microsoft’s stock had already climbed 22% year-to-date, outperforming the broader S&P 500, which is up about 8%. After the earnings report, shares jumped to over $553 in extended trading, well above the previous record closing high of $513.71 set on July 25.
Microsoft and Nvidia are now the clear frontrunners in the market cap rankings, both fueled by their strategic roles in the rapidly expanding AI economy. Microsoft’s deep integration with OpenAI and its massive cloud infrastructure position it at the center of enterprise AI adoption. Meanwhile, Nvidia provides the core GPU technology powering the generative models that drive demand for both companies’ products and services.
In contrast, Apple, long the most valuable U.S. company, has slipped to third place with a market cap of approximately $3.2 trillion. Its stock is down 17% so far in 2025, amid growing concerns that it is lagging in AI innovation. Apple is set to release its quarterly earnings after market close on Thursday, which could shift investor sentiment.
Nvidia remains the top performer among tech megacaps this year, with a gain of 33%. The company is set to report its next quarterly results in late August. With AI continuing to reshape the competitive landscape, Microsoft and Nvidia have clearly emerged as dominant players in the new era of technology.
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