Microsoft has achieved a significant financial milestone, with its stock price surging to elevate the company’s market valuation beyond $4 trillion for the first time in its 50-year history. This accomplishment positions Microsoft as the second company in history to reach this valuation, following Nvidia, which crossed the $4 trillion mark earlier this month.
The increase in Microsoft’s market value is attributed to quarterly earnings that exceeded expectations, along with the company disclosing its Azure revenue for the very first time. In its latest announcement, Microsoft indicated that its Azure cloud computing sector generated over $75 billion for the 2025 fiscal year, leading to a rise in stock prices during after-hours trading on the Nasdaq. Currently, Microsoft’s stock is trading approximately 4 percent higher, sustaining its new market valuation.
Over the past decade, Microsoft has invested heavily in expanding its Azure cloud platform, which now outperforms Google in terms of revenue, while still ranking second to Amazon Web Services. Azure has become an integral part of Microsoft’s operations, supporting its AI initiatives, Office software, Windows components, Xbox, and much more.
Microsoft’s strategic investment in cloud computing has positioned the company to harness the growing demands of AI technologies. Earlier this year, skepticism arose surrounding the $100 billion investment in The Stargate Project, while Microsoft CEO Satya Nadella defended the company’s own substantial spending of $80 billion on cloud and AI data center initiatives. “All I know is, I’m good for my $80 billion,” Nadella remarked at the time.
On a recent earnings call, Microsoft CFO Amy Hood announced plans for the company to allocate an additional $30 billion towards AI infrastructure investments in the upcoming quarter. If this pace continues, Microsoft could potentially spend upwards of $120 billion on cloud and AI infrastructure throughout the next fiscal year.
