Microsoft has made history by becoming the second company ever to reach a $4 trillion market capitalization, fueled by stellar quarterly results that surpassed even optimistic forecasts. Revenue surged 18% to $76.4 billion, with profits jumping nearly 25% to $27 billion, driven by its cloud division Azure, which posted a record $75 billion in revenue—a 34% year-over-year increase. The growth outpaced rivals, with Azure’s accelerating momentum (31% to 39% over consecutive quarters) solidifying Microsoft’s position as the clear No. 2 in cloud computing. Analysts unanimously raised price targets, citing confidence in the company’s AI-driven expansion and plans to invest $30 billion this quarter in data-center infrastructure.
Political and Market Dominance
The rally lifted the S&P 500 to new highs, with Microsoft and another tech giant leading the charge. Political tailwinds emerged as the new U.S. administration sought to integrate tech firms into domestic supply chains for critical materials, aiming to counter China’s dominance. Under CEO Satya Nadella, Microsoft’s transformation from a legacy software player to a cloud and AI leader has rewarded investors, with shares hitting all-time highs. The company now trails only Nvidia in market value, setting the stage for a tight race in the AI era.
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