Microsoft Corp. once again joined the elite ranks of companies valued at over $4 trillion, underscoring growing investor confidence in the tech giant’s long-term artificial intelligence ambitions. The milestone places Microsoft alongside Nvidia, while Apple briefly crossed the same threshold earlier in the day before closing just below it.
Shares of Microsoft climbed 2% to $542.07 on Tuesday, bringing its market capitalization to approximately $4.04 trillion. The company first crossed the $4 trillion mark in July, following a sustained rally driven by AI demand and strong performance from its cloud business.
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The surge followed news that OpenAI, Microsoft’s close AI partner, had restructured its ownership and converted into a public benefit corporation. The move came after the Delaware and California attorneys general confirmed they would not challenge the reorganization plan.
As part of the change, Microsoft has secured roughly a 27% stake in OpenAI’s new for-profit entity, further solidifying its position as a leading player in the rapidly evolving AI sector. The deal also reassures investors that Microsoft’s partnership with OpenAI remains strong despite past governance disputes.
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Apple and Nvidia Remain in the Race
Apple’s shares briefly crossed the $4 trillion valuation line earlier Tuesday, trading at around $269 before closing slightly lower at a total valuation of $3.99 trillion. Apple has historically been the first company to break major valuation milestones — including $1 trillion, $2 trillion, and $3 trillion — largely thanks to the enduring success of the iPhone.
Meanwhile, Nvidia continues to dominate as the first company to achieve and maintain a $4 trillion valuation, driven by global demand for its AI chips that power much of the current generative AI boom.
AI Mania Keeps Markets Soaring
The simultaneous trillion-dollar valuations of Microsoft, Nvidia, and Apple reflect the ongoing AI-fueled investor frenzy. Analysts warn, however, that such rapid growth may not be sustainable in the long run as competition tightens and valuations climb beyond traditional market fundamentals.
Still, for now, Microsoft’s renewed $4 trillion status cements its leadership in both the cloud computing and AI innovation sectors — a position it seems unlikely to relinquish anytime soon.
