A number of weeks in the past, Nvidia turned the primary firm on the earth to achieve the coveted $4 trillion market capitalization. This was on the again of a robust quarter the place it raked in $44.1 billion, fueled by the robust demand for its AI-optimized {hardware}. Now, Microsoft has an identical story to inform following its newest fiscal quarter stories from yesterday.

After informing traders and the general public that it earned $76.4 billion in FY25 This autumn, leading to a internet revenue of an eye-watering $27.2 billion, Microsoft’s inventory worth has jumped by roughly 5%, which signifies that it has crossed the $4 trillion market cap. It’s only the second firm to achieve this mark as others are fairly a methods off. Apple stands robust at $3.1 trillion, Google’s father or mother firm Alphabet is at $2.3 trillion, and Meta is about to hit the $2 trillion-mark.

It is not solely shocking that Microsoft managed to achieve this market cap so quickly after its newest fiscal report. The corporate’s cause for hovering market worth is identical as Nvidia: AI and the cloud. Microsoft CEO Satya Nadella credited the agency’s investments within the cloud and AI, additionally noting that Azure handed $75 billion in annual income. Different classes like Productiveness and Enterprise Processes, Clever Cloud, and Extra Private Computing grew too.

Microsoft’s Chief Monetary Officer Amy Hood additionally had the next to say:

We closed out the fiscal yr with a robust quarter, highlighted by Microsoft Cloud income reaching $46.7 billion, up 27% (up 25% in fixed forex) year-over-year.

Whereas Microsoft celebrates reaching this milestone, additionally it is price highlighting that the corporate lately laid off 9,000 workers regardless of having fun with a very robust quarter. Satya Nadella famous shortly after that the choice weighs closely on him, however sadly, that is the “enigma of success”. No matter which means.