Microsoft is on track to surpass a $4 trillion market value for the first time, following a surge in its stock driven by strong earnings and AI-fueled growth.
Shares rose 8.5% to $557.03 in premarket trading on Thursday, pushing the company’s valuation to $4.14 trillion. This would make Microsoft the second company, after Nvidia, to cross the $4 trillion mark.
The jump follows a record earnings report. Microsoft forecast $30 billion in capital spending for the current fiscal quarter. It also reported booming sales in its Azure cloud unit, now its top revenue driver.
Microsoft first reached a $1 trillion value in April 2019. Its rise to $3 trillion came slower than Nvidia’s, which tripled its value in just one year. Nvidia crossed $4 trillion on July 9. Apple trails behind at $3.12 trillion.
The company’s rise comes despite earlier fears around U.S. tariffs. Microsoft has bounced back nearly 50% since April 2025, when markets dipped due to new trade pressures.
Key to the rebound is Microsoft’s deep push into AI. Its partnership with OpenAI has supercharged both Azure and Office 365, helping the company cement its lead in generative AI.
“Microsoft is now clearly ahead of rivals like Google and Amazon in the cloud-AI race,” analysts say.
Investors have also responded positively to Microsoft’s cost controls. Layoffs and trimmed operating expenses boosted profits, while AI investment continued to grow.
Since late 2022, the company has delivered record-breaking revenue quarter after quarter. The stock’s rally shows no signs of slowing, with Wall Street showing growing confidence in Microsoft’s AI roadmap.
