Lunatic_Gamer
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Microsoft valuation surged past $4 trillion after markets opened on Thursday after beating expectations for second-quarter revenue, becoming only the second company in history to hit the milestone since AI chip designer Nvidia broke the record just weeks earlier.
Key Facts
• Microsoft's stock rose as much as 5% on Thursday morning after the tech giant's earnings call Wednesday.
• The company reported an 18% revenue growth rate, raking in $76.4 billion for a net income of $27.2 billion.
• Microsoft and Nvidia's market cap growth has started to outpace Apple, whose $3.1 billion valuation is still the third largest in the world despite worries from investors it is falling behind in artificial intelligence, Reuters reported
Key Background
Microsoft's surge in valuation came after the legacy tech giant made moves over the last year to pivot to AI and cloud computing. The company also laid off 6,000 employees in May, about 3% of its staff. The company invested over $88 billion in data centers for cloud computing and AI services, like its Copilot assistant, The New York Times reported. But other major products, including its Microsoft 365 suite, Xbox gaming services, Windows equipment and devices, and the social networking site LinkedIn also posted revenue increases over the last quarter, the company said Wednesday.Big Number
$75 billion. That's how much revenue Microsoft's Azure cloud computing service brought in for the company, a 34% rise from the previous year. It was the first time Microsoft disclosed revenue from the service, which competes with other major cloud computing providers like Amazon Web Services.
Microsoft Becomes Second Company Valued Over $4 Trillion
Microsoft’s revenue surge was credited to its Azure cloud computing service.


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