Microsoft has officially crossed the $4 trillion market valuation mark, becoming the second company after Nvidia to achieve this milestone. The tech giant’s shares surged over 5 percent on July 31 following a strong earnings report that exceeded market expectations, pushing its valuation beyond the $4 trillion level.
The 50-year-old company reported $76.4 billion in revenue for the quarter, reflecting an 18 percent rise compared to the same period last year. Net income reached $27.2 billion, up by 24 percent year-on-year. Microsoft’s cloud division stood out as the top performer, with Azure revenue growing by 39 percent, outperforming analyst projections of 34.75 percent. For the first time, Azure crossed $75 billion in annual revenue.
During the earnings call, Microsoft CEO Satya Nadella stated, “In our largest quarter of the year, we significantly exceeded expectations.” He added, “Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era.” Nadella also noted that Microsoft has been gaining market share consistently. “We continue to lead the AI infrastructure wave and gained market share every quarter this year,” he told analysts.
Earlier this month, AI chipmaker Nvidia became the first to hit the $4 trillion valuation milestone. Nvidia’s growing dominance in AI was evident in its 7.3 percent weighting in the S&P 500 index, the highest of any listed company. Its chips are powering advanced technologies across sectors, driving demand in the booming AI industry.
With this, Microsoft and Nvidia have overtaken Apple in market value. Apple now stands third with a valuation of around $3.2 trillion, as its stock has dropped by 17 percent this year.
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