Microsoft reaches $4 trillion valuation after solid quarterly results

Microsoft (NASDAQ:MSFT) soared past $4 trillion in market valuation for the first time on Thursday, becoming the second company to join the exclusive club along with AI giant Nvidia (NVDA).

Redmond, Washington-based Microsoft was trading over 5% at $539.05 in the morning, lifting the tech giant’s market cap to a towering $4 trillion.

Shares closed at $513.24 on Wednesday before soaring to near 9% higher in extended trading following the earnings report. Overall, the stock gained nearly 22% so far this year, outperforming the 8% rise in the broader S&P 500 Index.

The software company posted a better-than-expected earnings report on Wednesday, with revenue rising 18% YoY, its fastest growth in over three years, thanks to booming sales in the Azure cloud computing business and strength in its artificial intelligence segment.

Microsoft, one of the biggest beneficiaries of the artificial intelligence boom, received praise from Wall Street, with Wedbush analyst Dan Ives calling it a “slam-dunk quarter” for the company.

The company’s Azure revenue growth, which remained the major focal point to gauge the strength of its AI contribution, came in at 39% year-over-year, well above both the Street’s 34% expectation and surpassing $75 billion in revenue.

Microsoft crossed the $3 trillion market cap level in January last year, becoming second to Apple (AAPL) to gain the spot. Both companies were eyeing the position since the start of the year.

Nvidia, which is scheduled to report results in late August, became the first company to reach the $4 trillion market cap earlier this month.