Microsoft's market cap hits around $4.1t after Nvidia

Microsoft’s market capitalization reached around US$4.1 trillion in after-hours trading following a stronger-than-expected earnings report.

The company, based in Redmond, Washington, is a global software and cloud services provider.

Microsoft reported 18% year-on-year revenue growth, its fastest pace in over three years, largely attributed to its Azure cloud business.

For the first time, Microsoft disclosed Azure revenue in absolute terms, stating sales from Azure and other cloud services surpassed US$75 billion in fiscal 2025, up 34% from the previous year.

Microsoft shares have risen 22% since the start of 2025, outperforming the S&P 500’s 8% gain.

If the rally holds, Microsoft will join Nvidia as the only public companies valued over US$4 trillion.

Nvidia’s market cap recently crossed US$ 4 trillion, while Apple is now third at about US$3.2 trillion after its stock declined 17% this year.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Market cap milestones are accelerating at an unprecedented pace

The journey to US$4 trillion represents a dramatic compression in the timeline between major valuation milestones.

It took 86 years to go from US Steel’s first US$1 billion valuation in 1901 to IBM hitting US$100 billion in 19871. Microsoft then reached $500 billion just 12 years later in 1999, and Apple achieved the first US$1 trillion milestone in 20181 2.

Now Microsoft has potentially reached US$4 trillion just seven years after Apple’s $1 trillion breakthrough, demonstrating how technology companies can scale valuations at speeds that would have been impossible in previous industrial eras.

This acceleration reflects the fundamental shift from physical manufacturing to digital platforms that can scale globally with relatively lower marginal costs.

The progression also shows how investor expectations have evolved, as what once seemed like impossibly large numbers become stepping stones to even higher valuations within increasingly shorter timeframes.