Microsoft's Market Value Reaches $4 Billion, Second Largest in the World

Microsoft has reached a market capitalization of $4 billion, making it the second company in the world to achieve this milestone after Nvidia earlier this month. The tech giant's shares surged 8.2% before the market opened on Thursday, pushing its market value to $4.1 billion. Microsoft's cloud computing unit Azure saw a 39% increase in sales, exceeding the 34% expected by analysts.

Microsoft has reached a market capitalization of $4 trillion, making it the second company in the world to achieve this milestone after Nvidia earlier this month. The tech giant's shares surged 8.2% before the market opened on Thursday, pushing its market value to $4.1 trillion. This remarkable feat was driven by a 39% increase in sales from Microsoft's cloud computing unit, Azure, which exceeded the 34% expected by analysts [3].

Microsoft's quarterly earnings report highlighted significant growth across its operations. The company reported an 18% revenue increase, the fastest rate of expansion in over three years. Azure, in particular, played a pivotal role, with its revenue exceeding $75 billion, up 34% from the prior year [1]. This performance was further bolstered by Microsoft's strategic partnership with OpenAI, which has generated substantial returns and is reshaping enterprise productivity and data analysis [2].

The $4 trillion milestone underscores the transformative impact of artificial intelligence (AI) and cloud computing on corporate America. Microsoft's ability to convert AI enthusiasm into actual profits has created a perfect storm of growth, capturing investor imagination and dollars. The company's forecast of $30 billion in capital expenditures for the next quarter signals confidence in sustained AI demand and a commitment to scaling capacity ahead of anticipated growth [2].

Despite the milestone achievement, Microsoft faces legitimate concerns that could affect future performance. AI revenue still represents a relatively small portion of total company revenue, meaning the current valuation relies heavily on projected future growth rather than established cash flows. Recent layoffs have also raised questions about company culture and employee retention, which could undermine Microsoft's ability to maintain its technological edge [2].

Microsoft's entry into the $4 trillion club reflects broader market optimism about companies that can profitably scale AI infrastructure. The Nasdaq rose 1.3% and the S&P 500 jumped nearly 1% following Microsoft's results, demonstrating how AI success stories are lifting the entire technology sector [2].

References:
[1] https://www.cnbc.com/2025/07/30/microsoft-market-cap-tops-4-trillion-after-hours-on-earnings-beat.html
[2] https://rollingout.com/2025/07/31/microsoft-4-trillion-market-cap/
[3] https://ca.investing.com/news/stock-market-news/microsoft-meta-comcast-and-biogen-rise-premarket-qualcomm-falls-4129030