Microsoft on Track to Become the Next $4 Trillion-Dollar Stock

Microsoft is the most likely stock to reach $4 trillion next, surpassing Nvidia's recent milestone. With a current market cap of $3.72 trillion, Microsoft has a clear edge over other companies. Its cloud computing and AI businesses are booming, and the company recently delivered strong Q3 results with positive guidance. Additionally, Microsoft is expected to outperform Apple, which has been hit by trade policies and falling behind in the AI race. With its strong fundamentals, Microsoft is poised to become the next $4 trillion-dollar stock.

Microsoft is the most likely stock to reach $4 trillion next, surpassing Nvidia's recent milestone. With a current market cap of $3.72 trillion, Microsoft has a clear edge over other companies. Its cloud computing and AI businesses are booming, and the company recently delivered strong Q3 results with positive guidance. Additionally, Microsoft is expected to outperform Apple, which has been hit by trade policies and falling behind in the AI race. With its strong fundamentals, Microsoft is poised to become the next $4 trillion-dollar stock.

Microsoft's cloud computing arm, Azure, has been a significant driver of growth. The company plans to invest $80 billion in developing AI-enabled data centers across the globe. In the third quarter of fiscal 2025, Microsoft spent $16.7 billion on developing cloud and AI infrastructure, including data centers, servers, and networking hardware. The growing adoption of Azure has been driving the Intelligent Cloud segment growth, which reported revenues of $26.8 billion in the third quarter of fiscal 2025, marking a 21% year-over-year increase [3].

Microsoft faces stiff competition from Alphabet GOOGL and Oracle ORCL, but its strong fundamentals and market position give it a clear advantage. Microsoft's shares have returned 18.1% in the year-to-date period, outperforming the Zacks Computer – Software industry and the Zacks Computer and Technology sector’s growth of 17% and 7.9%, respectively [3].

The Zacks Consensus Estimate for MSFT’s fiscal 2025 earnings is pegged at $13.36 per share, which has remained steady over the past 30 days. The estimate indicates 13.22% year-over-year growth [3].

Microsoft Corporation price-consensus-chart | Microsoft Corporation Quote
Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here [3].

Microsoft is expected to outperform Apple, which has been hit by trade policies and falling behind in the AI race. Apple entered this year as the world’s most valuable company at just about $3.9 trillion before tumbling in recent months amid President Donald Trump’s tariff turmoil. Nvidia and Microsoft traded places as the world’s most valuable company in recent months, before Nvidia surged ahead to reach the $4 trillion mark first [1].

Microsoft's strong fundamentals and market position give it a clear advantage. The company's cloud computing and AI businesses are booming, and it recently delivered strong Q3 results with positive guidance. With its strong fundamentals, Microsoft is poised to become the next $4 trillion-dollar stock.

References:
[1] https://www.cnn.com/2025/07/09/investing/nvidia-is-the-first-usd4-trillion-company
[2] https://www.techpowerup.com/338796/nvidia-becomes-first-company-ever-to-hit-usd-4-trillion-market-cap
[3] https://www.tradingview.com/news/zacks:721e61aa1094b:0-microsoft-s-azure-driving-cloud-growth-what-s-the-path-ahead/