Microsoft finally joins $4 trillion market club

Microsoft has officially joined the $4 trillion market club, becoming the second-largest company ever to reach this milestone, alongside Nvidia.

The company delivered an 18% revenue gain over the year, which is the strongest growth in over three years, driven by its Azure cloud computing division.

Microsoft marks its fifth consecutive quarterly beat, underlining the success of its AI cloud strategy. Azure, Microsoft's cloud computing platform, is logging over $75 billion in annual revenue in line with the significant transformation of the intelligent cloud unit as a source of powerhouse growth delivery.

According to the survey, it is expected that quarterly revenue will increase to $73.89 billion and earnings per share will be $3.37.

In this connection, the Chief Executive of the company shed light on the growth of the company’s cloud and AI advancements, stating, “Cloud and AI are driving transformation across every industry.”

On the contrary, Nvidia is positioned to hit $4 trillion this month and subsequently remains the top performer among tech giants, with its shares up by 33% fueling the demand for AI-critical graphics processing units.

It is pertinent to note that Microsoft stock is already up 22% in 2025, compared to the S&P 500's 8% gain, closing at a record of approximately $513.71 on July 25. It is expected to climb above $553 in extended trading.

The company plans to invest a total of approximately $30 billion in the next quarter to enhance its AI infrastructure, aligning with analyst expectations.