Microsoft Hits $4 Trillion Valuation Following Strong Earnings Report

Microsoft has surpassed $4 trillion in market valuation, becoming the second publicly traded company to do so after Nvidia. The tech giant reported booming sales in its Azure cloud computing business and forecast a record $30 billion in capital spending for the first quarter of the current fiscal year to meet soaring AI demand. Its shares were up 6.6% at $546.33 in morning trading. Microsoft first cracked the $1-trillion mark in April 2019 and reached $3 trillion more recently.

Title: Microsoft Surpasses $4 Trillion in Market Valuation

Microsoft (MSFT.O) has achieved a significant milestone by surpassing $4 trillion in market valuation, becoming the second publicly traded company to do so after Nvidia (NVDA.O). This remarkable feat follows a blockbuster earnings report that showcased the company's strong performance in its Azure cloud computing business [1].

The tech giant reported booming sales in Azure, its cloud computing arm, and forecasted a record $30 billion in capital spending for the first quarter of the current fiscal year to meet soaring AI demand [2]. This substantial investment underscores Microsoft's commitment to leading in enterprise AI and cloud infrastructure.

Microsoft's shares were up 4.5% at $536.47 in morning trading on Thursday, July 31, 2025. The company first cracked the $1 trillion mark in April 2019 and reached $3 trillion more recently, demonstrating its steady growth and resilience [3]. Microsoft's multibillion-dollar bet on OpenAI has been a game changer, powering its Office Suite and Azure offerings with cutting-edge AI, and fueling the stock to more than double its value since the debut of ChatGPT in late 2022 [1].

The strong earnings and AI-driven growth have buoyed investor confidence in Microsoft, despite recent trade talks and potential US tariffs. The company's ability to maintain profitability and cash generation despite heavy AI capital expenditures has been a key factor in its stock performance [1].

Microsoft's Azure cloud computing unit generated more than $75 billion in the 2025 fiscal year, marking the first time the company has put a dollar figure on this critical business [2]. This growth, driven by the AI boom, positions Azure as a major player in the cloud infrastructure services market.

References
[1] Reuters. (2025, July 31). Microsoft reaches $4 trillion valuation after solid results. Retrieved from https://www.reuters.com/business/retail-consumer/microsoft-reaches-4-trillion-valuation-after-solid-results-2025-07-31/
[2] Bloomberg. (2025, July 30). Microsoft gives Azure cloud sales for first time at $75 billion. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/microsoft-gives-azure-cloud-sales-for-first-time-at-75-billion
[3] New York Post. (2025, July 31). Microsoft joins $4T market cap club after blowout earnings. Retrieved from https://nypost.com/2025/07/31/business/microsoft-joins-4t-market-cap-club-after-blowout-earnings/