Microsoft’s market value soared past $4 trillion on Thursday, making it the second publicly traded company after Nvidia to reach this milestone. The achievement followed a strong earnings report released the previous evening.
The Redmond-based tech giant first hit the $1 trillion mark in April 2019. While its rise to $3 trillion was steadier compared to rapid gains by Nvidia and Apple, Microsoft still managed to join the elite $4 trillion club shortly after Nvidia, which reached the milestone on July 9 after tripling its value in just a year.
Investors cheered Microsoft’s performance as the company announced plans to spend $100 billion on AI. The tech leader reported strong growth in its Azure cloud computing division and projected a record $30 billion in capital spending for the current fiscal quarter to meet surging AI demand.
Gerrit Smit of Stonehage Fleming Global Best Ideas Equity Fund noted, “Microsoft is transforming into a dominant cloud infrastructure and enterprise AI player—all while maintaining profitability and strong cash flow despite heavy AI investments.”
Recent optimism in trade talks between the U.S. and its partners ahead of an August 1 tariff deadline has also lifted stocks, pushing the S&P 500 and Nasdaq to new highs. Microsoft’s massive spending plans could position it to outpace competitors in AI investment over the next year.
Meanwhile, Meta Platforms reinforced its AI focus during its earnings call, forecasting third-quarter revenue that exceeded expectations as AI boosted its ad business. The social media company also raised its annual capital spending forecast by $2 billion—mirroring a similar move by Alphabet.
Microsoft’s stock surge follows a string of record revenues since September 2022. The company has also streamlined operations with recent layoffs while doubling down on AI investments to maintain its lead as businesses rush to adopt the technology.
