Microsoft Hits $4 Trillion Valuation as Cloud and AI Drive Record Growth

In a landmark moment for the tech industry, Microsoft has officially crossed the $4 trillion market valuation mark for the first time in its five-decade history. The tech giant now joins Nvidia as the only other company to surpass this massive milestone, underscoring the growing dominance of cloud and AI in shaping the future of global markets.

Microsoft’s stock price surged by about 4% today, driven by robust earnings and, notably, its decision to break out Azure revenue figures for the first time. The company disclosed that its Azure cloud division generated over $75 billion during its 2025 fiscal year—a figure that instantly sparked investor confidence and pushed shares higher in after-hours trading on Nasdaq.

Over the past decade, Microsoft has steadily expanded its Azure cloud business, which now sits ahead of Google Cloud in revenue and trails only Amazon Web Services. Beyond cloud computing, Azure has become the backbone for much of Microsoft’s ecosystem—from Office software and Windows to Xbox gaming and cutting-edge AI initiatives.

Microsoft’s aggressive investments are also paying off in the AI race. Earlier this year, when questions swirled around The Stargate Project’s $100 billion funding, CEO Satya Nadella stood firm on Microsoft’s massive bet on the future. “All I know is, I’m good for my $80 billion,” said Nadella, emphasizing the company’s commitment to cloud and AI data centers.

In line with this vision, CFO Amy Hood confirmed plans to pour another $30 billion into AI infrastructure in the next quarter alone. If this pace continues, Microsoft could spend well over $120 billion on AI and cloud projects in the coming year, further solidifying its position at the forefront of the tech landscape.