Microsoft surpassed $4 trillion in market capitalization after the close of trading, becoming the second company after NVIDIA in the "$4 trillion club," CNBC reports.
The surge comes after a quarterly report that beat expectations, sending shares up 8% and giving the company a market value of roughly $4.1 trillion. If the trend continues, Microsoft will officially join NVIDIA, which first reached that mark in early July.
Microsoft reported 18% revenue growth, the fastest pace in more than three years, driven by the growth of its Azure cloud business. Microsoft disclosed Azure revenue in dollars for the first time and said that, together with other cloud services, it will exceed $75 billion in fiscal 2025, up 34% from the previous year. Microsoft shares have risen 22% so far this year, outperforming the S&P 500 index.
NVIDIA and Microsoft have been the biggest beneficiaries of the AI boom, overtaking Apple in market value. Apple is now third with $3.2 trillion and a 17% drop in shares this year as investors worry it is lagging behind in AI. NVIDIA graphics cards are at the heart of major language models from Microsoft, OpenAI, Google and Meta. NVIDIA shares have risen 33% in 2025, and the company is set to report its latest financial results in late August.