Microsoft becomes second $4 trillion company after strong earnings

In a remarkable turn of events, Microsoft has achieved a market capitalization of $4 trillion in after-hours trading, marking its entry into an elite circle of tech giants alongside Nvidia. This milestone comes on the heels of a strong earnings report that showcased the company's fastest revenue growth in over three years. After the market closed on Wednesday, Microsoft’s shares surged by 8%, bringing its valuation to approximately $4.1 trillion. Should this upward trend continue into Thursday’s trading, Microsoft will become the second company to reach this noteworthy benchmark this month, following Nvidia. The catalyst for this impressive growth can be attributed to the outstanding performance of Microsoft’s cloud services. For the first time, the company revealed specific revenue figures for its Azure platform, reporting sales exceeding $75 billion in fiscal 2025—an impressive 34% increase from the previous year. Overall, Microsoft’s total revenue rose by 18%, reflecting a robust momentum across its diverse ecosystem. As of the close of trading on Wednesday, Microsoft’s stock has risen by 22% in 2025, significantly outpacing the S&P 500's gain of 8%. The stock reached a record close of $513.71 on July 25 and soared to above $553 in extended trading following the earnings announcement. Nvidia, which has also surpassed the $4 trillion valuation, remains the leading tech giant in 2025 with an increase of 33% year-to-date. Its graphics processing units (GPUs) serve as the backbone of AI technology, supporting large language models for major companies such as Microsoft, OpenAI, Google, and Meta. These GPUs are essential to the growing investments in data centers across the tech industry. Meanwhile, Apple, which previously held the title of the most valuable company, has slipped to third place with a market cap of approximately $3.2 trillion. The tech giant's shares have decreased by 17% this year, raising concerns about its competitive stance in the field of artificial intelligence. Apple is expected to announce its quarterly earnings on Thursday, while Nvidia will follow with its earnings report in late August.