Microsoft has officially become the second company in history to achieve a $4 trillion market capitalization, following a strong earnings report that boosted investor confidence. The milestone came after shares surged nearly 8%, driven by accelerating growth in AI and cloud services.
The company’s Azure cloud platform grew about 39% year-over-year, cementing Microsoft’s leadership in enterprise AI. CEO Satya Nadella emphasized that ongoing investments in AI infrastructure, including billions in new data centers, are the foundation of the company’s long-term strategy.
This achievement places Microsoft alongside Nvidia, the only other company to surpass the $4 trillion threshold. Analysts note that this milestone reflects both market optimism around AI and Microsoft’s consistent revenue and profit growth, which reached $282 billion and $102 billion, respectively, in fiscal 2025.
While sustaining this valuation will depend on continued execution in AI and cloud, Microsoft’s entry into the $4 trillion club underscores its role as a pillar of the modern tech economy.
Source: Reuters, Bloomberg, Barron’s
