Microsoft Reaches $4 Trillion Valuation After Solid Results
Microsoft just rocketed into the stratosphere, joining Nvidia in the exclusive $4 trillion club! Fueled by a knockout earnings report, the tech giant proved its AI gambit is a golden goose, sending its stock soaring to unprecedented heights. Forget billions, we’re talking trillions!
Big Tech’s AI titans flexed their muscles late Thursday, igniting a market frenzy. Microsoft and Meta’s knockout earnings reports sent shockwaves through Wall Street, catapulting Amazon higher and driving Nvidia to dizzying, record-breaking heights. The combined might of these four AI powerhouses translated to a staggering half-trillion-dollar surge in market value, proving AI’s dominance isn’t just hype it’s a gold rush.
The S&P 500 now dances to the tune of AI. Five tech titans – Nvidia, Microsoft, Amazon, Alphabet, and Meta Platforms – wield so much power that they collectively represent a staggering 25% of the entire index, LSEG data reveals. Wall Street’s AI-fueled giants aren’t just leading the charge; they ARE the charge.
Microsoft is betting big on AI, earmarking a staggering $30 billion for capital expenditures this quarter – a new record. This massive investment comes as Azure cloud sales explode, fueled by insatiable demand for AI. Not to be outdone, Copilot, Microsoft’s AI-powered assistant, has rocketed past 100 million monthly active users, signaling a seismic shift in how people are working and creating.
Microsoft’s shares were last up 4.5 percent after climbing as much as 8 percent.
Stonehage Fleming’s Gerrit Smit sees a cloud titan in the making, forging its path as an AI powerhouse. What sets it apart? Scorching profitability and serious cash flow, even while it’s pouring fuel on the AI fire.
Meta Platforms is betting big on AI, and the payoff is already massive. Fueled by artificial intelligence, their advertising engine is firing on all cylinders, propelling them to a quarterly revenue forecast that leaves Wall Street projections in the dust.
Redmond, Washington-headquartered Microsoft first reached a $1 trillion stock market value in 2019.
While Nvidia and Apple sprinted to trillion-dollar valuations, one company’s ascent to the $3 trillion peak was a more deliberate climb. Contrast this with AI-powerhouse Nvidia, which witnessed its market cap explode threefold in a single year, then shatter the $4 trillion barrier on July 9th, marking a meteoric rise.
Apple was last valued at $3.12 trillion.
Investor optimism, fueled by promising developments in U.S. trade negotiations, sent the S&P 500 and Nasdaq soaring to unprecedented heights as President Trump’s looming August 1 tariff deadline spurred action.
Microsoft’s OpenAI gamble? Jackpot. Since ChatGPT’s arrival, their stock’s skyrocketed, more than doubling in value. But the real revolution? AI-powered Office and Azure, completely transforming how we work and build in the cloud. This isn’t just an investment; it’s a reinvention.
Fueled by a record-breaking capital expenditure forecast – the biggest single-quarter investment in its history – the company is poised to not just compete, but potentially eclipse its rivals in spending power over the coming year.
The AI arms race is heating up. Following Alphabet’s lead, Meta just injected another $2 billion into its capital spending budget, signaling Silicon Valley’s all-in bet on AI dominance.
Cloud computing heavyweight Amazon.com rose 2 percent ahead of its quarterly report after the bell.
AI chip supplier Nvidia climbed 0.8 percent, lifting its market capitalization to a record $4.4 trillion.
© Thomson Reuters 2025
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