On Thursday, Microsoft achieved a significant milestone by reaching a market capitalization of $4 trillion (approximately Rs. 3,49,15,020 crore), making it the second publicly traded company to do so after Nvidia. This accomplishment follows a strong earnings report that underscored the effectiveness of Microsoft’s substantial investments in artificial intelligence (AI).
The impressive financial results from Microsoft and Meta Platforms, released late on Thursday, also contributed to gains for Amazon and propelled Nvidia to a new all-time high, with the collective market value of these four tech giants increasing by over half a trillion dollars.
According to data from LSEG, Wall Street’s leading players in AI—Nvidia, Microsoft, Amazon, Alphabet, and Meta Platforms—now represent a quarter of the S&P 500 index.
Microsoft has projected an unprecedented $30 billion in capital expenditures for the first quarter of the current fiscal year to address the surging demand for AI. The company reported significant growth in its Azure cloud computing division and noted that its Copilot AI tools have exceeded 100 million monthly active users.
The company’s shares increased by 4.5 percent, having surged as much as 8 percent during the trading session.
“Microsoft is evolving into a major player in cloud infrastructure and enterprise AI, doing this profitably and generating cash despite extensive investments in AI,” remarked Gerrit Smit, lead portfolio manager of the Stonehage Fleming Global Best Ideas Equity Fund.
In a move to bolster its AI capabilities, Meta Platforms announced quarterly revenue forecasts that significantly surpassed Wall Street’s expectations, attributing their growth to the infusion of artificial intelligence into their primary advertising operations.
Founded in Redmond, Washington, Microsoft first reached a stock market value of $1 trillion in 2019. Its growth trajectory to $3 trillion was steadier compared to that of Nvidia and Apple, with the AI-focused Nvidia tripling its valuation within about a year before reaching the $4 trillion benchmark on July 9. Apple is currently valued at approximately $3.12 trillion.
Recent advancements in trade negotiations between the United States and its trading partners, ahead of a tariff deadline set by former President Donald Trump, have also positively impacted the stock market, contributing to record highs for the S&P 500 and Nasdaq indexes.
Microsoft’s multibillion-dollar investment in OpenAI has become a pivotal factor in its growth, enhancing its Office Suite and Azure platforms with advanced AI technology, and driving the company’s stock to more than double its value since the launch of ChatGPT in late 2022.
The company’s capital expenditure forecast, its largest ever for a single quarter, positions it to potentially outpace its competitors in spending over the coming year.
In a related move, Meta raised the lower end of its annual capital spending forecast by $2 billion, following a similar action by Alphabet, signaling an intensified competition among Silicon Valley firms to lead in AI innovation.
Amazon.com, a key player in cloud computing, saw a 2 percent increase in its stock price ahead of its quarterly earnings report, while AI chip manufacturer Nvidia rose by 0.8 percent, bringing its market capitalization to a record $4.4 trillion.
© Thomson Reuters 2025
