Following two incredible years of growth, thanks to artificial intelligence (AI), Nvidia became the world’s first $4 trillion company on July 9.
Microsoft has a market capitalization of $3.7 trillion, so it could be the next member of the ultra-exclusive $4 trillion club.
Microsoft stock could get there in the next few months if the incredible momentum in its AI products and services continues.
10 stocks we like better than Microsoft ›
Nvidia supplies the world’s best artificial intelligence (AI) chips for data centers. Demand is heavily outstripping supply, sending the company’s sales — and its stock price — surging over the last couple of years. In fact, on July 9, Nvidia became the first company in history to achieve a market capitalization of $4 trillion.
But Microsoft (NASDAQ: MSFT) is nipping at Nvidia’s heels in terms of valuation. Its stock has soared by a whopping 686,858% since its initial public offering (IPO) in 1986, and the company’s market cap is now over $3.7 trillion.
In other words, Microsoft stock needs to gain only 8% more to place the company alongside Nvidia in the $4 trillion club. Here’s why its growing presence in AI software and infrastructure could fuel that move.
Image source: Getty Images.
Since 2019, Microsoft has invested around $14 billion in ChatGPT developer OpenAI. It has used the start-up’s latest large language models (LLMs) to craft its own AI assistant, called Copilot, which is embedded in almost all of its flagship software products. Copilot is accessible for free through Windows, Bing, and Edge, and it’s available as a paid add-on in a host of other products, creating new revenue streams for Microsoft.
For instance, enterprises can add Copilot to their Microsoft 365 subscription for an additional monthly fee, where it can boost their employees’ productivity in applications such as Word, Excel, and Outlook. Enterprises around the world pay for more than 400 million 365 licenses, so the Copilot add-on could generate billions of dollars in recurring revenue over time. During the fiscal 2025 third quarter (ended March 31), the number of organizations using Copilot for 365 tripled compared to the year-ago period, so uptake has certainly been rapid so far.
Then there is the Copilot Studio platform, which enables organizations to create custom AI agents to suit their workflows. For example, a business can create one agent to deal with customer service queries on their website and another agent to help manage their logistics network. The platform had over 230,000 customers at the end of the fiscal 2025 third quarter, and I expect that number to climb significantly as AI adoption becomes more widespread.