Microsoft Surpasses $4 Trillion in Market Capitalization
Within the so-called “Magnificent Seven” group of major tech firms, Microsoft now ranks as the second-best performer.
Quick overview
- Microsoft has become the second company in history to reach a market capitalization of $4 trillion, following Nvidia.
- The milestone was achieved after Microsoft reported quarterly earnings that exceeded Wall Street expectations, leading to a 9.1% surge in share price.
- Microsoft's cloud business, Azure, saw a 39% revenue increase, significantly outperforming analyst forecasts.
- Despite Microsoft's achievement, Nvidia remains the most valuable company, having crossed the $4 trillion mark earlier this month.
Microsoft, the tech giant founded by Bill Gates, has officially become the second company in history to reach a market capitalization of $4 trillion—surpassed only by Nvidia.
The milestone came after Microsoft reported quarterly earnings that beat Wall Street expectations, triggering a surge in its share price during Thursday’s pre-market trading.
Shares jumped as much as 9.1%, reaching $560 per share. Until now, Nvidia had been the only company to cross the $4 trillion mark, achieving the feat earlier this month.
Microsoft’s rise reflects its growing influence in the artificial intelligence space, where it has emerged as one of the key players fueling a wave of market capitalization gains across the tech sector.
A standout from the earnings report was Microsoft’s cloud business. Azure, its cloud computing unit, posted a 39% increase in revenue—well above the 34% analysts had forecast.
Within the so-called “Magnificent Seven” group of major tech firms, Microsoft now ranks as the second-best performer. After a sharp drop in April—when its stock hit lows due to tariff threats from President Donald Trump—Microsoft shares have rallied nearly 45%, closing near record highs.
Wall Street responded positively to this latest milestone. Of the 72 analysts covering the stock, 65 now rate it a “Buy,” while only one recommends selling.
Nvidia Still Leads the Pack
Despite Microsoft’s achievement, Nvidia remains the world’s most valuable company. Boosted by investor enthusiasm over its dominant role in AI, Nvidia surpassed Microsoft in late June to take the top spot.
As of Wednesday, Nvidia shares were trading around $157.42, up 2.62% from Tuesday’s close. At the end of June, Nvidia’s market cap stood at $3.86 trillion—4.3% higher than Microsoft’s $3.69 trillion. In early July, Nvidia became the first company to cross the $4 trillion threshold, cementing its leadership in the increasingly competitive AI space.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save