Microsoft nears the $4 trillion market cap. The big tech company is racing ahead thanks to artificial intelligence.
Microsoft surges on Wall Street: The big tech company aims to surpass the $4 trillion market valuation mark for the first time on Thursday, July 31. The stock jumped more than 8% in pre-market trading.
Thanks to a strong earnings report, the tech giant could become the second company after Nvidia to surpass the notable milestone. If the rally on Wall Street continues throughout the session, Microsoft would join the chipmaker, which reached the $4 trillion mark for the first time earlier this month.
Microsoft, based in Redmond, Washington, surpassed the $1 trillion mark for the first time in April 2019. Its move to $3 trillion has been more measured than that of other tech giants, Nvidia and Apple. For example, Nvidia, a leading artificial intelligence company, has tripled in value in about a year and reached the $4 trillion mark before any other company on July 9th. Apple was last valued at $3.12 trillion.
Microsoft rallies, the reasons for its elevated market capitalization
Microsoft, the second-largest US company, has recovered nearly 50% from the lows reached in April 2025, when global markets were rocked by Trump’s tariff offensive.
Microsoft’s multibillion-dollar bet on OpenAI is proving to be revolutionary, powering its Office suite and Azure offerings with advanced AI technologies and causing its stock price to more than double since ChatGPT’s debut in late 2022.
Thanks to exclusive access to OpenAI models, Microsoft has leaped to the forefront of the generative AI pack with its Azure cloud business, now the company’s primary revenue driver, strengthening its market leadership in the technology landscape compared to Google’s cloud and Amazon’s web services.
The tech giant disclosed Azure revenue in absolute dollar terms for the first time and said that sales of Azure and other cloud services exceeded $75 billion in fiscal 2025, up 34% from the previous year.
Wall Street’s confidence in the company follows the tech giant’s consecutive record revenues since September 2022.
Microsoft Share Price Rally
The stock rally received a further boost as the tech giant reduced its workforce and increase its investment in artificial intelligence twofold. The goal is to consolidate its leadership, while companies around the world race to exploit the technology.
While steep US tariffs had prompted investors to prepare for further corporate spending restrictions, Microsoft’s solid earnings showed that the company’s financial performance has not yet been significantly impacted by taxation.
Furthermore, progress in trade talks between the United States and its trading partners ahead of President Donald Trump’s August 1 deadline for customs duties has recently supported stocks, pushing the S&P 500 and the Nasdaq to record highs.
As of the close on Wednesday, July 30, Microsoft shares were up 22% for the year, outpacing the S&P 500 Index’s gain of 8%. Microsoft reached a record close of $513.71 on July 25.
Original article published on Money.it Italy 2025-07-31 15:13:48. Original title: Microsoft impressiona Wall Street e punta superare la market cap di Nvidia
