Microsoft Surges to $4 Trillion Market Cap on Strong Cloud and AI Performance

Microsoft Corp. (MSFT) shares rallied over 4% after reporting quarterly earnings that surpassed analyst expectations, propelling its market capitalization past the $4 trillion threshold. The tech giant's cloud computing division, Azure, disclosed annual revenues exceeding $75 billion for the first time, with growth accelerating in AI-related services.

PC shipment recoveries and inventory buildup ahead of potential tariffs contributed to the upside surprise. Microsoft's forward P/E ratio expansion from 28.83x to 39.42x within fiscal 2025 reflects mounting investor confidence in its AI roadmap, despite premium valuations.

Strategic negotiations with OpenAI may further strengthen Microsoft's artificial intelligence capabilities. The potential agreement WOULD grant continued access to cutting-edge AI models while restructuring OpenAI's profit-oriented framework—a development that added momentum to MSFT's pre-earnings rally.