Microsoft hit a $4 trillion market value on Thursday, becoming the second publicly traded company to cross that milestone, after chipmaker Nvidia. The jump came after the tech giant posted a strong earnings report, which showed its big investments in Artificial Intelligence (AI) are delivering results.
Microsoft’s upbeat performance, along with strong results from Meta Platforms, gave a boost to other tech heavyweights like Amazon and Nvidia. Together, these four AI-driven companies added over half a trillion dollars in market value in a single day.
Microsoft and Nvidia’s market performance
Microsoft had an outstanding year in 2025, thanks to the growing demand for cloud computing and artificial intelligence (AI). The company posted record numbers for its financial year ending in June.
Its yearly revenue jumped 15% to $281.7 billion, while profit rose 16% to $101.8 billion. The final quarter of the year was even stronger – revenue was up 18% to $76.4 billion, and profit increased 24% to $27.2 billion, according to the Microsoft
Nvidia, meanwhile, continues to rule the AI hardware space in 2025. It became the first company in the world to reach a $4 trillion market value, driven by massive demand for its AI chips and data centre products.
The company’s revenue for fiscal 2025 more than doubled, jumping 114% from last year to $130.5 billion. Its earnings per share also soared by 147%. Investors took notice, with Nvidia’s stock rising 39% so far this year, despite some ups and downs due to export limits on sales to China, as reported by Reuters.
AI giants now dominate Wall Street
Nvidia, Microsoft, Amazon, Alphabet and Meta, considered the top players in the AI race, now make up a quarter of the S&P 500 index, according to LSEG data.
Microsoft said it expects to spend a record $30 billion in the first quarter of the current fiscal year to keep up with the surging demand for AI. The company also reported strong sales from its Azure cloud business and revealed that its AI-powered Copilot tools now have over 100 million monthly active users, according to a report by Reuters.
Microsoft’s stock jumped 4.5%, at one point rising as much as 8% during the day.
“It is in the process of becoming more of a cloud infrastructure business and a leader in enterprise AI, doing so very profitably and cash generatively despite the heavy AI capital expenditures,” said Gerrit Smit, lead portfolio manager, Stonehage Fleming Global Best Ideas Equity Fund.
Meta also bets bigger on AI
Meta, too, signaled a stronger push into AI, raising its revenue outlook beyond Wall Street expectations. The company said AI is helping power its core advertising business, the report mentioned.
Microsoft first hit the $1 trillion mark back in 2019. Its rise to $4 trillion has been steadier than Nvidia’s, which tripled its value in just a year and reached $4 trillion on July 9. Apple, another tech giant, is currently valued at $3.12 trillion.
US trade talks and AI boom lift markets
Recent breakthroughs in US trade negotiations, just ahead of a tariff deadline set by President Donald Trump, have also helped lift investor sentiment. The S&P 500 and Nasdaq hit record highs in response.
Microsoft’s multi-billion-dollar partnership with OpenAI has been crucial. By integrating OpenAI’s technology into its Office Suite and Azure services, Microsoft has more than doubled its stock value since the launch of ChatGPT in late 2022, the report said.
The company’s capital spending plans suggest it may outspend all its rivals in the coming year.
Meta recently raised the lower end of its annual capital spending by $2 billion, following a similar move by Alphabet, clear signs that the race for AI dominance is accelerating across Silicon Valley.
Amazon, which is set to release its quarterly report soon, saw its shares climb 2%. Nvidia also rose 0.8%, taking its market cap to a record $4.4 trillion.
