Microsoft becomes $4 trillion company; officially joins Jensen Huang-led Nvidia to hit milestone

Microsoft

has crossed $4 trillion market valuation, becoming the second company after

Nvidia

to hit the milestone. According to a CNBC report, the 50-year-old software giant’s shares climbed more than 5% on July 31 after it posted a better-than-expected earnings report, pushing its market cap past the $4 trillion mark. Microsoft reported $76.4 billion in revenue, an 18% year-over-year increase, and $27.2 billion in net income, marking a 24% jump from the previous year. Microsoft's

cloud division

emerged as the standout performer, with Azure revenue jumping 39% compared to analyst estimates of 34.75%. The company’s Azure cloud platform surpassed $75 billion in annual revenue for the first time with 39% growth year-over-year.During the earnings call, Microsoft CEO Satya Nadella tols anaylsts: “In our largest quarter of the year, we significantly exceeded expectations.” “Cloud and AI is the driving force of business transformation across every industry and sector. We’re innovating across the tech stack to help customers adapt and grow in this new era,” he said. He further told anaylsts that “we continue to lead the AI infrastructure wave and gained market share every quarter this year”.Earlier this month, the AI chip maker notched a market capitalization of $4 trillion. Nvidia’s dominance was underscored by its 7.3% weighting in the S&P 500, the largest of any company in the index. The surge in AI-driven demand has positioned Nvidia as a key player, with its chips powering cutting-edge technologies across industries.With this, Nvidia and Microsoft have surpassed Apple to become a $4 trillion company. The iPhone maker is third at about $3.2 trillion, with its stock having fallen 17% this year.