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The $4 trillion club has another member officially. Microsoft has entered this elite club of $4 trillion market‑cap companies, following the entrance of NVIDIA earlier this month. For decades, Microsoft has been one of the most reliable tech giants, with steady and profitable growth. However, it never faced this boom before.
According to the latest reports, shares of this tech giant have climbed approximately 8 to 9% following blockbuster fiscal Q4 earnings. The primary driving sources behind it are Azure, Copilot AI, and a record $30 billion capital expenditure plan for Artificial Intelligence infrastructure.
This $4 trillion club didn't even exist a few weeks back, until Nvidia made history on July 9, 2025. Surpassing Apple and Microsoft, this hardware company’s share rose around 2.76% to make it the first public company to exceed a $4 trillion valuation, powered by skyrocketing demand for GPUs.
In the last quarter, NVIDIA generated $44.1 billion in revenue, which was almost a 69% increase from the same time the previous year. The rise of PC gaming has played a key role in this surge of GPU demand. Following the same route, Microsoft has also joined this group, reporting a revenue growth of 18%, marking the largest expansion in the past three years.
While NVIDIA capitalized on the hardware side of the AI boom, Microsoft’s surge is driven by software advancement. In 2025, Microsoft has witnessed a massive transformation through Copilot AI implementation, Azure cloud services, and strategic partnerships with OpenAI, Meta, and xAI. These collaborations have significantly boosted its market value.
Also Read: How NVIDIA and Broadcom AI Stocks are Doing One Year After Splitting?
Microsoft's fiscal Q4 2025 results show its dedication to developing advanced AI and cloud computing. The tech giant’s quarterly revenue is reportedly up to $76.4 billion, while the net income surged by 24% to $27.2 billion, which highlights the profitability of AI-driven transformation.
Talking about the meteoric rise and the esteemed club entering, the CEO of the company, Satya Nadella, stated, “We are going through a generational tech shift with AI… We lead the AI infrastructure wave and took share every quarter this year. We continue to scale our own data centre capacity faster than any other competitor.”
Industry insiders see this move as beyond a mere expansion. Microsoft’s end-to-end Artificial Intelligence ecosystem, from chips to models to API to productivity, everything offers a unified experience for enterprises that are looking to integrate generative AI from scratch.
Microsoft’s entry into the $4 trillion club highlights how transformation through Artificial Intelligence and cloud can rapidly change scenarios for tech giants. Despite Apple entering the Q4 fiscal year with Microsoft and NVIDIA, US tariff laws impacted its financial profits to a great extent.
Currently, Microsoft Copilot serves more than 100 million users worldwide, showing its increasing adoption graph. Amidst the layoffs and other financial bundles, Microsoft has mitigated some risks by its valued partnerships with OpenAI, Meta’s Llama, and Elon Musk’s Grok. To sum up, it’s commendable that the pace that NVIDIA set, Microsoft chased and achieved it within weeks, expanding its reliability for users.
Also Read: Microsoft to Spend $1.7 Billion on Human Waste Purchase, Here’s Why
