Microsoft has officially become the world's second-largest publicly traded company, boasting a market capitalization over $4 trillion. This milestone follows a stock surge after a strong fourth-quarter earnings report (for the fiscal year ending 30/6), demonstrating the company's substantial AI investments are paying off.
The stock has climbed 50% from its April low and more than doubled since ChatGPT's launch in late 2022. In the 2025 fiscal year, Microsoft achieved $281.7 billion in revenue, a 15% increase year-over-year. Net profit reached over $101.8 billion, a 16% rise.
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Microsoft's stock price over the past year. Source: Reuters |
Microsoft's stock price over the past year. Source: Reuters
Next quarter, the company anticipates record spending of $30 billion to meet the soaring demand for AI. Last year, sales in the Azure cloud computing division surpassed $75 billion, marking a 34% increase. CEO Satya Nadella stated their AI Copilot tools have over 100 million monthly active users.
Driven by the positive financial reports from Microsoft and Meta Platforms (Facebook's parent company), other major AI investors like Amazon and Nvidia also experienced significant stock increases. The combined market value of these four AI companies has grown by over $500 billion.
Headquartered in Redmond, Washington, Microsoft first reached a $1 trillion market cap in 2019. It took them six years to quadruple that figure.
Positive outcomes from tariff negotiations between the US and its trading partners bolstered the stock market, driving the S&P 500 and Nasdaq to record highs.
AI chip supplier Nvidia continues to hold the highest global market capitalization at $4.4 trillion. Nvidia and Microsoft are two of the biggest beneficiaries of the AI boom, surpassing Apple.
With its stock down 17% year-to-date, Apple holds the third-largest global market cap at approximately $3.2 trillion. Investor concerns about the iPhone maker falling behind in the AI sector have contributed to the stock decline. Apple will announce its earnings on 7/8.
Bao Bao (according to Reuters, CNBC)
