On Thursday, Microsoft achieved a significant milestone by becoming the second company ever to attain a $4 trillion market valuation. This remarkable feat followed the release of its impressive earnings report the previous night, which propelled the tech giant’s shares to new heights.
Microsoft’s shares (MSFT) surged by almost 4.5% following the market’s opening on Thursday, elevating its intraday valuation to $4.01 trillion. Since the beginning of the year, the company’s shares have experienced an increase of approximately 28%.
Just a year and a half following Microsoft’s achievement of a $3 trillion valuation, the company has reached another significant milestone. In April 2019, the company achieved a significant milestone by surpassing the $1 trillion mark. Nvidia has now joined the exclusive $4 trillion valuation club, a milestone it achieved earlier this month.
Microsoft has projected an unprecedented $30 billion in capital expenditures for the ongoing fiscal first quarter, aimed at advancing its artificial intelligence initiatives. Additionally, the company reported significant growth in sales within its Azure cloud computing sector on Wednesday. Analysts on Wall Street have observed that Microsoft’s Copilot AI chatbot seems to have significantly contributed to the growth of its Microsoft 365 enterprise software division.
Microsoft’s ascent to a $3 trillion valuation has been more calculated compared to its tech counterparts, Nvidia and Apple. Nvidia, a leader in artificial intelligence, saw its value triple in roughly a year, reaching the $4 trillion mark on July 9, ahead of any other company. Apple’s most recent valuation stood at $3.12 trillion.
Recent developments in trade negotiations involving the United States and its trading partners, in light of President Donald Trump’s impending August 1 tariff deadline, have positively influenced the stock market, leading to record highs for both the S&P 500 and the Nasdaq.
Microsoft, the second largest company in the United States, has experienced a remarkable recovery of nearly 50% since its lows in April 2025, a period marked by significant turmoil in global markets due to Trump’s tariff policies.
Microsoft’s substantial investment in OpenAI is reshaping the landscape, enhancing its Office Suite and Azure services with advanced AI technology. This strategic move has significantly boosted the company’s stock, which has more than doubled in value since the introduction of ChatGPT in late 2022.
With exclusive access to OpenAI’s models, Microsoft has surged ahead in the generative AI sector, significantly boosting its Azure cloud business, which has become the company’s primary revenue source. This move has further entrenched its position of power in the technology arena, particularly in contrast to Google’s cloud and Amazon’s web services.
Wall Street’s growing confidence in the company follows a series of record revenues achieved by the tech giant since September 2022.
The stock’s rally gained additional momentum as the tech giant reduced its workforce and intensified its investments in AI, aiming to solidify its dominance in a landscape where businesses are increasingly eager to leverage this technology.
Despite concerns over sweeping US tariffs prompting investors to prepare for reduced business spending, Microsoft’s robust earnings report indicates that the company has not yet felt the impact of these levies on its financial performance.
Despite experiencing a rapid ascent, Microsoft has been implementing workforce reductions in recent months. Earlier this month, the company announced plans to reduce its workforce by approximately 9,000 employees, which constitutes about 4% of its total staff. This marks the most significant reduction since 2023. The recent layoffs follow the company’s decision to reduce its workforce by 6,000 employees in May.
A representative for the company stated that the reductions in July were partially due to advancements in technology that have enhanced employee productivity. Although AI was not explicitly referenced, the layoffs occurred as major players in Silicon Valley implement the technology they are developing to improve workforce efficiency. Earlier this year, Microsoft CEO Satya Nadella revealed that between 20% and 30% of the company’s code is now being generated by AI. In response to this trend, Microsoft is investing billions into AI infrastructure.
