Microsoft Tops $3.5 Trillion Market Cap, Beats Nvidia

June 08, 2025 02:56 AM PDT | By EODHD

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Microsoft Tops $3.5 Trillion Market Cap, Beats Nvidia — Image source: Kalkine Media

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Microsoft (NASDAQ:MSFT) hit a new high as its market capitalization topped $3.5 trillion, edging out Nvidia (NASDAQ:NVDA) and solidifying its lead among the Magnificent Seven. Warning! GuruFocus has detected 5 Warning Sign with MSFT. Shares of Microsoft climbed to a record $467.68 on Thursday, up 0.8%, before adding another 0.6% on Friday to push its market cap past $3.5 trillion. Nvidia wasnt far behind, trading up 1.3% on Friday with a market cap of $3.47 trillion, while Apple (NASDAQ:AAPL) also breached the $3 trillion mark with a 1% gain to reach $3.02 trillion. Microsofts stock has outpaced the broader Nasdaq (IND), rising 11% year-to-date compared to the indexs modest sub-1% gain.

The software giant has been powered by robust growth in its cloud unit, Azure, where revenue jumped 28% year-over-year in Q3 FY25, and by its deepening partnership with OpenAI, which has driven strong demand for AI-powered services. Bernstein Societe Generale Group raised its price target on Microsoft to $540 from $520, citing significant upside potential as Azure continues to scale and AI integration expands across enterprise offerings. Bernstein analysts retained their Outperform rating, noting that Microsofts diversified revenue streamsfrom Office 365 subscriptions to LinkedIn and gamingprovide a hedge against macro uncertainties. Nvidias gains have been fueled by surging demand for its H100 and H200 GPUs, which dominate the AI data-center market, helping it close the gap with Microsoft. Apples performance, meanwhile, reflects resilient iPhone sales and growing services revenue, which has climbed 17% year-over-year to $21 billion in Q2 FY25.

Why It Matters: Microsofts $3.5 trillion valuation underscores the escalating AI and cloud war between the tech titans, where gains in enterprise adoption and AI partnerships can translate directly into market-cap milestones. The battle for supremacy now hinges on execution in generative AI, data-center infrastructure and enterprise software integrations. This article first appeared on GuruFocus. View Comments

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