Microsoft has become the second company in the world whose market capitalization exceeded $4 trillion, Bloomberg reports. Nvidia was the first to cross this threshold, which happened in early July.

Microsoft's stock was boosted by its quarterly report released July 30, which beat Wall Street's expectations. The company's shares jumped more than 6% at the opening of trading on July 31, but then slightly slowed down, remaining in the plus 5.2%. 

"Microsoft is finally getting the recognition it deserves, because it's the operating system for business. We all do our business with Microsoft - whether it's Word, Outlook or Excel," Bokeh Capital Partners chief investment officer Kim Forrest told Bloomberg. She said the company's quarterly results suggest Microsoft's position has gotten even stronger because, like Nvidia, "there just doesn't seem to be a replacement for it."

This year was a kind of recovery for the company, Bloomberg recalls. Last year and in the first quarter of 2025, its stock lagged the market - it was the only member of the "Magnificent Seven" whose shares were negative at the time. Investors expressed concerns about Microsoft's AI stance and the growth rate of its Azure cloud division, which investors are paying particular attention to. In its second-quarter report, the company said it increased sales by 39%, significantly beating market forecasts.

Wall Street is generally bullish on Microsoft's stock: 68 of 72 analysts who track its performance recommend buying it, and only one gave a "sell" recommendation, according to data compiled by Bloomberg. The average target price over a 12-month horizon is $602, which implies a potential upside of about 11%.

This article was AI-translated and verified by a human editor

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