Microsoft Hits $4 Trillion Market Capitalization, Becomes Second Company After Nvidia To Hit The Milestone

Microsoft Corp. (MSFT) stock on Thursday hit the $4 trillion market capitalization mark, after shares surged more than 5% during the day’s opening trade.

Microsoft is now the world’s second company to cross the $4 trillion market capitalization level, after Nvidia achieved the milestone earlier this month.

Microsoft’s shares have surged 28% year-to-date, with retail sentiment on Stocktwits surging to a one-year high and hovering in the ‘extremely bullish’ territory.

The recent surge follows Microsoft’s fourth-quarter earnings, which blew past Wall Street estimates. The Redmond-based company reported earnings per share (EPS) of $3.65 on revenue of $76.44 billion, compared to analyst expectations of an EPS of $3.37 on revenue of $73.86 billion, according to Stocktwits data.

Wedbush’s Managing Director, Dan Ives, called Q4 a “watershed quarter” for Microsoft. He raised the price target for MSFT stock to $625 from $600 while maintaining an ‘Outperform’ rating.

Ives underscored that the price target hike was due to the “eye-popping” strength of Microsoft’s cloud and AI divisions.

Microsoft CEO Satya Nadella echoed similar sentiments after the results.

“Cloud and AI is the driving force of business transformation across every industry and sector,” said Nadella.

Meanwhile, Nvidia Corp. (NVDA) shares also surged in Thursday morning trading session, reaching a new all-time high as Microsoft and Meta Platforms Inc.’s (META) strong earnings boosted investor sentiment about artificial intelligence (AI) demand.

Nvidia’s shares were trading 1% higher at the time of writing. Retail sentiment on Stocktwits around NVDA stock was in the ‘extremely bullish’ territory.

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