Microsoft hits $4 trillion in market value to join Nvidia’s elite circle

Microsoft has officially entered the elite $4 trillion market cap club, joining only Nvidia in reaching such a milestone. The surge follows a strong quarterly earnings report that sent Microsoft shares up by more than 5% Thursday, according to CNBC. This achievement underscores the robust growth driven by its Azure cloud computing services.

Microsoft's rise to record-breaking market capitalization highlights the impact of its flagship Azure cloud business. As reported by Yahoo Finance, Azure experienced a remarkable 18% revenue growth, its fastest in over three years. Revenue from Azure and other cloud services surpassed a whopping $75 billion in Azure's debut fiscal year, marking a 34% increase over the previous year.

Wedbush raised its price target for Microsoft to $625, citing the company's ability to capitalize on the current AI wave. Analysts predict strong growth in Microsoft's cloud operations, with an anticipated 37% increase in Azure revenue projections for fiscal 2026. This trend suggests that Microsoft continues to ride the AI-driven demand wave, according to Barron's.

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In recent market developments, Nvidia reached the $4 trillion valuation earlier in the month, driven in part by its significant role in developing large language models used across tech giants. Nvidia is anticipated to report its earnings in late August, potentially underscoring its continued market lead.

Meanwhile, Apple lags in third place with a market cap near $3.2 trillion. Although facing setbacks this year, investors remain keenly aware of Microsoft's and Nvidia's positions as major beneficiaries of the expanding AI sector. Apple's quarterly results will shed more light on its standing and future strategies.

Both Microsoft and Nvidia represent the upper echelons of tech giants reaping rewards from the artificial intelligence boom, pointing toward a decisive shift in the industry's dynamics.