Microsoft has officially become the second company in history to surpass a $4 trillion market valuation. Following a strong quarterly earnings report that sent its stock surging by nearly 4.5% on Thursday. The tech giant’s share price has climbed approximately 28% since the start of 2025. Driven largely by its aggressive investments in AI and cloud computing.
The company’s success is closely tied to its deep integration of OpenAI’s models across its product ecosystem. Microsoft Copilot, an AI agent embedded in Microsoft 365, has shown strong adoption among enterprise users, contributing to accelerated revenue growth. Meanwhile, Azure continues to gain momentum in the cloud computing market. Along with that, outpacing competitors like Google Cloud and Amazon Web Services in enterprise AI adoption.
- Microsoft forecasts $30 billion in capital spending this quarter, much of it aimed at scaling AI infrastructure.
- Its investment in OpenAI has positioned it at the forefront of generative AI, fueling adoption of AI agents across its Office and cloud services.
- Despite the positive outlook, Microsoft is undergoing significant restructuring, cutting approximately 9,000 jobs in July after laying off 6,000 in May 2025.
- CEO Satya Nadella reported that 20% to 30% of Microsoft’s internal code is now being written by AI systems, signaling major workforce productivity shifts.
Microsoft’s rise to the $4 trillion mark comes shortly after Nvidia reached the milestone. The company has continued to post record-breaking revenues, rebounding nearly 50% from its April 2025 lows. As businesses rapidly adopt AI agents and digital infrastructure, Microsoft appears well-positioned to maintain its leadership in the next wave of enterprise technology.
Source:
https://edition.cnn.com/2025/07/31/tech/microsoft-4-trillion-valuation
