In pre-market cap trade as of this writing, Microsoft’s MSFT +0.13% stock has risen by more than 8.5%, passing the remarkable $4 trillion market capitalization benchmark. With record results for the fourth quarter of fiscal 2025, the technology behemoth unveiled amazing revenues and profits that exceeded analysts’ estimates just yesterday. Microsoft attributed its success to the great demand for artificial intelligence (AI) and cloud services.
Whether investors will sustain this upward trend when the markets cap open on July 31 remains unknown; maybe Microsoft will join chipmaker Nvidia NVDA +2. 14% in the exclusive $4 trillion market cap club. With a market capitalization of $3.81 trillion as of Wednesday’s close and the stock up 22.2% year-to-date, MSFT’s valuation was registered. The high market valuations of these tech companies point to the transformational effect artificial intelligence is having on the world economy.
With a sizable $24.2 billion invested in upgrading its cloud infrastructure and AI research projects in the fourth quarter, Microsoft has seen major returns. Reflecting a 34% rise above FY24 and surpassing analysts’ expectations of $74.62 billion, the company’s Azure cloud computing business produced over $75 billion in yearly revenue. Microsoft’s Copilot artificial intelligence technologies have also drawn over 100 million monthly active users.
Microsoft is strengthening its own large language models (LLMs) at the front of AI models and incorporating its AI tools into a growing range of MSFT products.
Microsoft forecasts market cap roughly $30 billion in spending for the first quarter of FY26 on building AI infrastructure. Presently running almost 400 data centers globally, the business intends to create even more to fit the rising demand. Furthermore, Microsoft projects a 37% year-over-year increase in its Azure revenue, above the 33.5% predicted by market cap analysts.
Moving attention to segmental revenue projections, Microsoft’s Productivity and Business Processes segment is predicted to bring in between $32.2 billion and $32.5 billion.