Microsoft has officially reached a $4 trillion stock market value after reporting strong earnings, mainly fueled by its massive investments in artificial intelligence (AI). The company’s AI tools, including Copilot and Azure services, are showing major success. Along with other tech giants like Nvidia, Meta, and Amazon, Microsoft is shaping the future of AI and the stock market.
Microsoft Becomes Second Company to Cross $4 Trillion
On Thursday, Microsoft became the second publicly traded company, after Nvidia, to cross the $4 trillion valuation mark. This big jump came right after Microsoft released a strong quarterly earnings report.
The company’s performance showed how its long-term investments in artificial intelligence (AI) are finally bringing in great results.
Rea More: “Who Wants Another Shahbag Under State Backing?”: Rashed Khan
Strong Earnings and AI Investments Pay Off
Microsoft reported huge growth in its Azure cloud business and said that its AI-powered “Copilot” tools are now being used by over 100 million users every month.
The company also announced a record-breaking $30 billion capital expenditure plan for the upcoming quarter — its highest ever for a single quarter. This is mostly to meet the increasing demand for AI infrastructure.
Gerrit Smit, a lead portfolio manager, said:
“It is in the process of becoming more of a cloud infrastructure business and a leader in enterprise AI, doing so very profitably and cash generatively despite the heavy AI capital expenditures.”
Microsoft’s Shares Soar After Earnings
Following the report, Microsoft’s share price jumped as much as 8%, and stayed up by 4.5% later in the day. The strong investor confidence shows how AI is reshaping the company’s image — from a software giant to a leader in AI cloud services.
Other Tech Giants Also Gaining from AI Boom
Meta Platforms also reported better-than-expected earnings, thanks to AI boosting its advertising business. The company raised its revenue forecast and increased its annual capital spending target by $2 billion.
Amazon’s shares rose by 2% before its own earnings announcement. Alphabet also recently increased its AI investments.
Nvidia Still Leading the Pack
Nvidia, a top supplier of AI chips, saw its market value rise to $4.4 trillion, maintaining its position as the world’s most valuable public company. It had reached the $4 trillion mark earlier on July 9.
Big Tech Now Dominates U.S. Market
The five leading tech companies in AI — Microsoft, Nvidia, Amazon, Alphabet, and Meta — now make up 25% of the entire S&P 500 index, according to data from LSEG. This shows just how much AI is influencing the global economy.
Trade News Also Helps Stock Market
Recent positive news about U.S. trade negotiations ahead of a tariff deadline set by former President Donald Trump has also helped push the stock market to new heights, including the S&P 500 and Nasdaq indexes.
Microsoft’s Bet on OpenAI Paying Off
Microsoft’s partnership with OpenAI — the creators of ChatGPT — has been a big reason behind its success. Since ChatGPT launched in late 2022, Microsoft’s stock has more than doubled in value.
The AI-powered updates to its Office Suite and Azure Cloud have given the company a huge competitive edge.
Source: TBS
