Microsoft stocks on fire as tech giant eyes historic $4 trillion market cap. Where are Apple, Nvidia?

In a defining moment for the technology sector, Microsoft is crossing the $4 trillion market capitalization threshold for the first time, joining NVIDIA as one of only two publicly traded companies ever to reach this milestone. The surge came after trading hours on July 30, 2025, when Microsoft shares jumped by approximately 8–9 per cent, elevating its market value to around $4.1 trillion in extended trading.

The rally followed the release of strong fiscal fourth-quarter results, with revenue climbing 18 per cent YoY to $76.4 billion, and net income surging 24 per cent to $27.2 billion—driven by booming demand for AI-enabled cloud services. A key growth center: Azure and cloud computing. For the first time, Microsoft disclosed that annual Azure and cloud services revenues exceeded $75 billion, marking a 34 per cent increase year over year.

Azure growth, reported at 34–39 per cent across sources, underscores Microsoft’s position at the forefront of enterprise AI and infrastructure.


CEO Satya Nadella attributed the company's latest performance to its leadership in AI and cloud innovation, with tools like Microsoft 365 Copilot and Azure AI services now reshaping how businesses operate.

The company’s ongoing investment strategy includes escalating its capital expenditures to $30 billion next quarter, and upwards of $120 billion annually, strengthening its AI infrastructure for long-term ambition.

Microsoft’s rise comes as Apple, once the most valuable public company, now trails at around $3.2 trillion, in part due to investor concerns over its slower pace in AI innovation.

Meanwhile, NVIDIA—which became the first to breach the $4 trillion mark early July—remains the AI hardware powerhouse, though Microsoft’s platform dominance now challenges that lead.

As investors look ahead, analysts see Microsoft’s AI-first strategy, built on Azure infrastructure and enterprise tools, as the fuel that could propel it toward a $5 trillion valuation in the coming 18 months, assuming AI spending and cloud penetration continue at pace.

FAQs

Q1. How are Microsoft stocks performing?
A1. Microsoft shares jumped by approximately 8–9 per cent.

Q2. Who is Microsoft CEO?
A2. Microsoft CEO is Satya Nadella.