Microsoft has achieved a remarkable milestone as its market capitalization surpassed $3.5 trillion, making it the leader among the so-called Magnificent Seven technology companies. On Thursday, Microsoft’s stock reached a record price of $467.68, reflecting a 0.8% increase, with an additional rise of 0.6% on Friday. This puts it ahead of Nvidia, which has a market cap of $3.47 trillion, and Apple, whose valuation exceeded $3 trillion with a 1% gain to reach $3.02 trillion.
The tech giant’s stock has significantly outperformed the broader Nasdaq index, rising 11% year-to-date, in contrast to the Nasdaq’s modest gain of less than 1%. This growth is attributed to the success of Microsoft’s Azure cloud computing division, which saw a year-over-year revenue increase of 28% in its third fiscal quarter, alongside its extensive collaboration with OpenAI that has fueled the demand for AI-driven services.
In recognition of Microsoft’s potential, Bernstein Societe Generale Group upgraded its price target for the company’s shares from $520 to $540, citing the promising growth of Azure and the expanding integration of AI across its business portfolio. Analysts have maintained an Outperform rating, emphasizing that Microsoft’s varied revenue sources—from Office 365 subscriptions to LinkedIn and gaming—offer a buffer against economic uncertainties.
Nvidia’s recent stock performance has been bolstered by the high demand for its H100 and H200 graphics processing units (GPUs), essential for AI data centers, allowing it to narrow the gap with Microsoft. Apple’s growth trajectory is supported by strong iPhone sales, along with a 17% year-over-year increase in services revenue, totaling $21 billion in the second quarter of fiscal year 2025.
The significance of Microsoft’s $3.5 trillion valuation highlights the intensifying competition in the AI and cloud sectors among technology giants. As companies continue to invest in enterprise adoption and form strategic AI partnerships, the ongoing race for market dominance will largely depend on advancements in generative AI, data-center infrastructure, and software integration in enterprises.
This article reflects a positive trend in the tech industry, showcasing how innovation in AI and cloud services can drive substantial growth and valuation for leading companies like Microsoft.