Microsoft is now a $4T company!
What's the story
Microsoft has joined NVIDIA in the exclusive $4 trillion market capitalization club. The tech giant's shares surged nearly 8.2% on Thursday, pushing its market value past the $4 trillion mark. With this, the combined worth of the world's three largest tech companies, Apple, Microsoft, and NVIDIA, now exceeds that of China's entire equity market.
Market dominance
Tech giants worth more than China's equity market
The combined market capitalization of Apple, Microsoft, and NVIDIA is $11.6 trillion, according to Bloomberg data. This is more than the total valuation of any other equity market outside the US. The US equity market remains the largest globally with a total valuation of $66.7 trillion, while China ranks second with a valuation of $11.5 trillion, now less than that of these three tech giants combined.
Tech valuation
NVIDIA is now bigger than India's GDP
At a market value of $4.5 trillion, NVIDIA Corporation is now larger than India's GDP, which the IMF estimates at $4.2 trillion (projected to rise to $4.3 trillion by the end of 2025). Collectively, Apple, Microsoft, and NVIDIA now account for 17.4% of the total US market capitalization. In comparison, India's three largest listed companies, Reliance Industries, HDFC Bank, and Bharti Airtel, have a combined market value of $523 billion or just 10.2% of India's $5.2 trillion equity market.
Earnings surge
Microsoft's stellar quarterly report fuels share surge
Microsoft's shares have jumped some 28% since January and nearly 50% from April lows. The surge comes after a stellar quarterly report on Wednesday. Microsoft reported robust sales in its Azure cloud business and forecasted a record $30 billion in capital spending to fuel its AI growth. Analysts noted that Microsoft's Copilot AI is driving "meaningful growth" in the Microsoft 365 enterprise suite.