CNBC AI News, July 31st – Microsoft joins the exclusive $4 Trillion Club, becoming only the second company worldwide to achieve this milestone. The tech giant follows Nvidia, who claimed the title earlier this month, making this a monumental month for tech valuations.
Shares of Microsoft surged at the opening bell, climbing 8% to propel the company’s valuation to a staggering $4.1 trillion. This represents a gain of $300 billion compared to the previous day’s closing price.
The surge comes hot on the heels of Microsoft’s release of its Fiscal Year 2025 Q4 and full-year earnings report. Fueled by an explosive growth in AI-driven cloud services, Microsoft reported a Q4 revenue of $76.44 billion, a robust 18% year-over-year increase. Net income for the quarter reached $27.2 billion, marking an impressive 24% jump.
For the entire Fiscal Year 2025, Microsoft posted a revenue of $281.724 billion, representing a 15% increase year-over-year. Net income for the year stood at $101.832 billion, up 16% from the previous year.
Following these strong earnings, analysts are bullish on Microsoft’s future. Morgan Stanley raised its price target for Microsoft from $530 to $582, while JPMorgan Chase increased its target price from $475 to $565, reflecting strong confidence in the company’s continued growth trajectory.
Nvidia secured its place as the world’s first $4 trillion company earlier this month, on July 9th, preceding Microsoft by a mere 22 days, highlighting the intensifying race in the AI-powered tech landscape.
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