Microsoft Becomes Second Four Trillion Dollar Company After Azure AI Boom

Microsoft has achieved a remarkable milestone by surpassing a four trillion dollar market capitalisation marking it as only the second publicly traded company after Nvidia to reach this lofty valuation. The milestone was crossed as Microsoft’s shares surged by over five per cent to five hundred and thirty nine dollars and twenty two cents driving the company’s market capitalisation to just above four trillion dollars. Nvidia remains ahead valued at four point four four trillion dollars while Apple has slipped to third place at three point one two trillion dollars.

This surge followed the release of Microsoft’s quarterly earnings which comfortably exceeded market expectations. The strength of the results has been attributed to overwhelming demand for artificial intelligence tools embedded within the company’s Azure cloud computing unit. Microsoft’s chief executive Satya Nadella highlighted that cloud and AI technologies are at the heart of business transformation for organisations across all industries.

For the three months ending June revenue rose by eighteen per cent to seventy six point four billion dollars compared to expectations of seventy three point eight billion dollars. For the first time Microsoft disclosed revenue figures for its Azure and cloud services which exceeded seventy five billion dollars for the 2025 financial year. Despite this impressive figure Microsoft still lags behind Amazon Web Services the sector leader which reported revenue of over one hundred and seven billion dollars in the most recent year.

Microsoft’s investment in infrastructure has been significant with capital spending increasing by twenty seven per cent to twenty four point two billion dollars. This increase is focused on overcoming supply constraints which have limited the company’s ability to meet accelerating demand for AI solutions. A major three billion dollar data centre being built in Mount Pleasant Wisconsin is a testament to Microsoft’s commitment to expanding its AI and cloud capabilities with the first phase set for completion in 2026.

The partnership with OpenAI continues to pay dividends for Microsoft as exclusive access to cutting edge AI technology has made Azure increasingly attractive to business customers. The rapid rollout of AI powered products like Microsoft 365 Copilot has further cemented this advantage and reinforced the company’s leadership in the emerging AI economy.

Despite these successes Microsoft has announced significant restructuring this year with roughly fifteen thousand redundancies as the company seeks to reshape its mission for the new AI era. Nadella acknowledged the impact of these changes but framed them as necessary steps toward redefining Microsoft for a future led by cloud and artificial intelligence.