Microsoft grew to become the second company to achieve a $4 trillion market valuation on Thursday, after its blockbuster earnings report on Wednesday evening boosted the tech big’s shares.
Microsoft’s shares (MSFT) jumped practically 4.5% after the market opened on Thursday, pushing its intraday valuation to $4.01 trillion. The company’s shares have risen roughly 28% since the begin of this 12 months.
The milestone comes only a 12 months and a half after Microsoft reached a $3 trillion valuation. The company first cracked the $1 trillion mark in April 2019. It follows Nvidia into the $4 trillion valuation membership, which hit the mark earlier this month.
Microsoft forecast a report $30 billion in capital spending for the present fiscal first quarter to gasoline its AI ambitions, and reported booming gross sales in its Azure cloud computing enterprise on Wednesday. Wall Street analysts additionally famous that Microsoft’s Copilot AI chatbot seems to have pushed significant development in its Microsoft 365 enterprise software program enterprise.
Microsoft’s transfer to $3 trillion was extra measured than different tech giants, Nvidia (NVDA) and Apple (AAPL), with AI bellwether Nvidia tripling its worth in nearly a 12 months and clinching the $4 trillion milestone earlier than some other company on July 9. Apple was final valued at $3.12 trillion.
Lately, breakthroughs in commerce talks between the US and its buying and selling companions forward of President Donald Trump’s August 1 tariff deadline have buoyed shares, propelling the S&P 500 and the Nasdaq to report highs.
Microsoft, the second largest US company, has rebounded practically 50% from its April 2025 lows, when world markets have been rattled by Trump’s tariff offensive.
Microsoft’s multibillion-dollar bet on OpenAI is proving to be a game-changer, powering its Office Suite and Azure choices with cutting-edge AI and fueling the inventory to greater than double its worth since ChatGPT’s late-2022 debut.
Armed with unique entry to OpenAI’s fashions, Microsoft has raced to the entrance of the generative AI pack — supercharging its Azure cloud enterprise, now the company’s prime income driver, and solidifying its dominance in the tech panorama, in comparison with Google’s cloud and Amazon’s net providers.
Wall Street’s surging confidence in the company comes on the heels of back-to-back report revenues for the tech big since September 2022.
The inventory’s rally had additionally obtained an additional enhance as the tech big trimmed its workforce and doubled down on AI investments — decided to cement its lead as companies in every single place race to harness the know-how.
While sweeping US tariffs had traders bracing for tighter enterprise spending, Microsoft’s sturdy earnings have proven that the company’s books are but to take a success from the levies.
But regardless of its meteoric rise, Microsoft has been streamlining its workforce in current months. The company mentioned earlier this month that it could cut around 9,000 employees, roughly 4% of its employees, its largest discount since 2023. Those layoffs got here after the company minimize 6,000 staff in May.
A company spokesperson mentioned the July cuts have been, partially, a mirrored image of recent applied sciences which have made staff extra productive. While AI wasn’t talked about particularly, the cuts got here as Silicon Valley giants deploy the know-how they’re constructing to make their staff extra environment friendly. Microsoft CEO Satya Nadella said earlier this year that 20% to 30% of the company’s code was being generated by AI, and it’s is pouring billions into AI infrastructure investments.