Microsoft has reclaimed its position as the world’s most valuable public company, with its market capitalization surging past $3.5 trillion and outpacing rival Nvidia. The software giant’s stock closed at a record $467.68, extending a rally that has seen shares climb 11% year-to-date—well ahead of the broader Nasdaq’s modest gains.
This milestone underscores Microsoft’s dominance in the escalating race to lead the artificial intelligence and cloud computing sectors.
The latest surge is fueled by robust growth in Microsoft’s Azure cloud platform, which posted a 28% year-over-year revenue increase in the third quarter of fiscal 2025. Azure’s momentum has been further accelerated by deepening integration with OpenAI, whose advanced models now power a growing suite of Microsoft’s enterprise and consumer services.
The partnership, which has seen Microsoft invest nearly $14 billion in OpenAI, is driving unprecedented demand for AI-powered offerings and positioning Azure as the cloud of choice for businesses seeking cutting-edge generative AI capabilities.
Wall Street has responded enthusiastically. Bernstein and Societe Generale recently raised their price targets on Microsoft to $540, citing the company’s ability to scale Azure and monetize AI across its diversified product ecosystem, from Office 365 to LinkedIn and gaming.
Goldman Sachs projects Microsoft’s cloud revenue could reach $300 billion by 2029, more than doubling from current levels. Analysts broadly agree that Microsoft’s blend of cloud, productivity, and AI assets provides a strong hedge against macroeconomic uncertainty and competitive threats.
Nvidia, which has benefited from explosive demand for its AI-focused GPUs, remains close behind with a $3.47 trillion market cap. Apple, meanwhile, crossed the $3 trillion threshold on the back of resilient iPhone sales and a 17% jump in services revenue.
Yet it is Microsoft’s execution in enterprise AI and cloud infrastructure that has set it apart, as evidenced by a 67% year-over-year surge in commercial bookings and a backlog of nearly $300 billion in unrecognized service contracts.
As the battle for AI and cloud supremacy intensifies, Microsoft’s record valuation reflects not just current performance, but investor confidence in its long-term leadership. With Azure’s growth reaccelerating and OpenAI integration deepening, Microsoft is poised to remain at the forefront of the next era in enterprise technology.
