Microsoft Surpasses $4T Market Cap, Joins Nvidia as Second Company to Achieve Milestone

Microsoft has surpassed $4 trillion in market cap, following Nvidia's achievement earlier in July. The company's stock jumped over 5% on better-than-expected results. This milestone makes Microsoft the second company to reach this mark, highlighting its significant growth and market influence.

Microsoft Corp. (MSFT) has achieved a significant milestone, becoming the second publicly traded company to surpass the $4 trillion market capitalization mark. This milestone was reached after the company's stock surged over 5% following its strong fiscal fourth-quarter earnings report [1].

Microsoft joins Nvidia Corp. (NVDA), which crossed the $4 trillion threshold earlier in July, in the exclusive club of companies with market capitalizations exceeding $4 trillion. The company's stock price has climbed more than 110% since the debut of OpenAI’s (OPAI.PVT) ChatGPT in November 2022 [1].

The earnings report highlighted Microsoft's robust performance, with the company reporting earnings per share of $3.65, beating Wall Street estimates of $3.37. Revenue came in at $76.4 billion, marking an 18% increase from the prior year. The company's Azure cloud business generated over $75 billion in revenue over the past year, rising 34% from the year before [3].

Microsoft's growth is attributed to its significant investments in artificial intelligence and cloud services. The company's Intelligent Cloud segment, which includes Azure, reported $29.8 billion in revenue during the quarter. The company's integration of AI into its products, notably through its early investments in OpenAI, has also contributed to its growth [2].

However, the relationship between Microsoft and OpenAI has recently taken a rocky turn as the duo hash out the terms of OpenAI’s transition to its for-profit arm into a public benefit corporation overseen by its nonprofit parent [1]. Despite this, Microsoft is continuing to invest heavily in its AI capabilities, with plans to spend $80 billion on AI-related efforts by 2025 [2].

Microsoft is also facing an FTC antitrust investigation over its relationship with OpenAI, which could pose a potential headwind for the company [1]. Despite these challenges, Microsoft's strong earnings and growth prospects have investors optimistic about the company's future.

References:
[1] https://finance.yahoo.com/news/microsofts-market-cap-surpasses-4-trillion-mark-joining-nvidia-in-exclusive-club-141657294.html
[2] https://www.disruptionbanking.com/2025/08/01/microsoft-joins-nvidia-4-trillion-club/?kref=https%3A%2F%2Fwww.disruptionbanking.com%2F&kuid=811091e0-39ef-48b5-af7f-d8b4aebc7a0d-1754046000
[3] https://finance.yahoo.com/news/microsoft-surges-past-4t-market-224500285.html