^{Photo: Business Today}

Microsoft Hits $4 Trillion Milestone After Blowout Earnings

Microsoft’s market capitalization soared past $4.1 trillion in after-hours trading on Wednesday, following an 8% surge in its stock price triggered by a standout quarterly earnings report. With this milestone, Microsoft becomes the second U.S. company ever to cross the $4 trillion mark—joining Nvidia, which reached the threshold earlier this month.

If the rally holds when markets open on Thursday, Microsoft will officially solidify its position in the exclusive $4 trillion club, surpassing Apple, which currently lags behind at a market cap of around $3.2 trillion.

Azure Drives Record Revenue Growth

Microsoft posted 18% year-over-year revenue growth, its fastest pace in over three years, driven primarily by its cloud computing powerhouse, Azure. For the first time, Microsoft disclosed actual dollar figures for Azure, reporting that Azure and other cloud services brought in over $75 billion in fiscal 2025—a 34% jump compared to the previous year.

The decision to reveal Azure's financials marks a pivotal moment for the company, highlighting just how central its cloud business is to future growth and its AI strategy.

Shares Hit New Highs

• Microsoft closed at $513.71 on July 25, marking an all-time high.
• In after-hours trading on Wednesday, the stock soared past $553.
• Year to date, Microsoft shares are up 22%, significantly outpacing the S&P 500’s 8% gain.

This upward momentum reflects growing investor confidence in Microsoft’s leadership in artificial intelligence and cloud infrastructure—two sectors driving massive enterprise transformation.

AI Boom Reshapes the Market Cap Race

Microsoft’s rise mirrors that of Nvidia, which earlier in July became the first publicly traded U.S. company to surpass $4 trillion in market value. Nvidia’s GPUs power the AI infrastructure behind Microsoft’s own AI tools, as well as those of OpenAI, Meta, Google, and Amazon.

In 2025, Nvidia’s stock has soared 33%, the best performance among the mega-cap tech names. The synergy between Nvidia’s hardware and Microsoft’s cloud-based AI solutions has made them the two dominant players in the AI ecosystem.

Meanwhile, Apple, once the undisputed king of market cap, has seen its stock tumble 17% this year, amid concerns that it is falling behind in the AI race. Apple is set to release its quarterly results after Thursday’s closing bell, with investors watching closely for any signs of renewed AI momentum.

Cloud and AI at the Core of Microsoft’s Growth Strategy

With the AI arms race heating up, Microsoft’s early investments—particularly its multi-billion-dollar stake in OpenAI and its seamless integration of AI across products like Azure, Copilot, Office, and Dynamics—are paying off.

CEO Satya Nadella has emphasized that Microsoft’s future lies in becoming the “AI platform of choice” for businesses worldwide. With the company now consistently reporting strong cloud revenue growth and climbing market value, that vision is taking shape.

Microsoft and Nvidia Reshape the Tech Power Rankings

The $4 trillion milestone not only confirms Microsoft’s resilience and adaptability in a shifting tech landscape—it also reflects a broader trend: AI dominance is now the key driver of Wall Street’s biggest valuations.

As Microsoft and Nvidia race ahead, the question now becomes: who will be next to join the $4 trillion club—or will these two companies continue to widen the gap with the rest of the market?

With Apple, Amazon, Google, and Meta all playing catch-up, the AI-fueled transformation of Big Tech is only just beginning.