Microsoft has made history by becoming the second company to surpass a $4 trillion market capitalization, following Nvidia, which reached $4.37 trillion earlier in July 2025. This breakthrough was made possible thanks to impressive financial results and a strategic focus on artificial intelligence and cloud technologies.

Microsoft's Financial Success

After publishing its Q4 report for fiscal year 2025, Microsoft (MSFT) shares rose 8% in after-hours trading, bringing the company’s market cap to $4.1 trillion. According to the report, annual revenue grew by 18% — the highest figure in the last three years. The main driver was the cloud business, particularly the Azure platform. For the first time, Microsoft disclosed separate figures for Azure, reporting that total revenue from cloud services, including Azure, reached $75 billion.

As of July 31, 2025, Microsoft shares trade at $556.28, exceeding the record closing price of $513.71 set on July 25. Since the beginning of the year, the stock has gained 22%, significantly outperforming the S&P 500 index, which has grown by 8%.

Comparison with Nvidia and Apple

Nvidia remains the leader with a $4.37 trillion market cap, driven by a 33% stock increase in 2025 due to high demand for its AI chips. Microsoft, with a $4.1 trillion valuation, has surpassed Apple, which is in third place with about $3.2 trillion. Apple (AAPL) shares have fallen 17% since the start of the year due to investor concerns about a slowdown in AI development. Apple's current share price is $209.10.

Microsoft actively uses Nvidia chips for its AI solutions, including the Azure platform and projects with OpenAI, highlighting the interlinked success of the two companies. Founded in 1993, Nvidia has transformed from a gaming GPU maker into a leader in AI infrastructure, while Microsoft is betting on software and cloud services for AI.

Why Is Microsoft Growing?

Microsoft's market cap growth is tied to its leadership in artificial intelligence and cloud technology. Azure has become a major revenue stream, supporting large language models and enterprise solutions. Investors highly value Microsoft's ability to monetize AI, unlike Apple, whose initiatives like Apple Intelligence have so far failed to meet market expectations.

Moreover, Microsoft has shown steady stock growth: since early 2023, shares have risen by 37%, and nearly doubled since 2021 — from $313.88 to $556.28. This positions the company as one of the major players in the "Magnificent Seven" of tech giants, along with Nvidia, Amazon, and Alphabet.

Conclusion

By reaching a $4.1 trillion market cap, Microsoft has strengthened its position as a technology market leader, second only to Nvidia. The company’s success is driven by growth in cloud services and a strong bet on AI, allowing it to surpass Apple, whose value has dropped to $3.2 trillion. In the race for dominance in the AI era, Microsoft and Nvidia are setting the pace, showing how software and hardware for artificial intelligence are shaping the future of the market.