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Tech heavyweights Meta and Microsoft soared to new heights on Thursday, collectively adding a staggering $400 billion to their market valuations following stellar earnings reports and growing investor confidence in artificial intelligence (AI).
Meta, the parent company of Facebook and Instagram, and Microsoft, the software giant behind Azure and LinkedIn, both posted better-than-expected financial results that ignited a rally in their stock prices. Microsoft shares rose nearly 5%, while Meta surged 11.25% by the close of trading.
Microsoft Briefly Hits $4 Trillion Milestone
For a brief moment on Thursday, Microsoft crossed the $4 trillion market value threshold a feat only Nvidia has achieved before. Although Microsoft closed the day just shy of that benchmark at $3.97 trillion, the milestone highlighted the company’s dominance in the accelerating AI arms race.
The company reported an 18% increase in revenue over the past quarter, reaching $76 billion. Microsoft also revealed plans to invest more than $30 billion over the next three months, primarily to expand its cloud infrastructure, a critical backbone for AI services.
“Our cloud business is scaling to meet unprecedented demand,” said Microsoft CEO Satya Nadella in a post-earnings call. “We’re committed to driving innovation and delivering the infrastructure that powers the next generation of AI solutions.”
Meta Nears $2 Trillion as Daily Users Approach 3.5 Billion
Meta’s performance was equally impressive. The company’s quarterly revenue surged 22% to nearly $50 billion, as CEO Mark Zuckerberg highlighted the growing importance of AI in Meta’s long-term vision.
With almost 3.5 billion people using Meta’s platforms daily, the company announced projected expenses of $114–$118 billion in 2025 with significant investments earmarked for AI development and the global expansion of its data centers.
“We are fundamentally reshaping how people interact with technology,” said Zuckerberg in a statement. “AI is enabling us to build new experiences and platforms that are reaching billions worldwide.”
AI Boom Lifts Entire Sector, But Not All Tech Giants Soar
The AI wave is lifting some boats more than others. Investors are also eyeing Amazon, which is set to report its earnings later Thursday. With a market value just under $2.5 trillion and its stock up around 2%, expectations are high that the e-commerce and cloud giant will join the AI success stories of Meta, Microsoft, and Nvidia.
So far in 2025, Nvidia shares have climbed 30%, Microsoft 27%, and Meta an impressive 32%. These gains are a stark contrast to Apple, which has seen its stock tumble 18% this year amid growing skepticism about its position in the AI race.
Although Apple was the first company to cross the $1 trillion, $2 trillion, and $3 trillion thresholds, it’s now trailing rivals like Microsoft and OpenAI in AI innovation, according to analysts.
“Apple has historically been a fast follower,” noted tech analyst Raj Patel of Insight Capital. “But in the AI era, the lag is beginning to look like a liability.”
Alphabet Struggles Amid Search and Cloud Challenges
Alphabet, Google’s parent company, has seen only modest gains of 1.5% in 2025. The company, which operates the third-largest cloud service after Amazon and Microsoft, has faced headwinds from the rise of generative AI and chatbots, which are reshaping how users access information online.
In a recent antitrust trial, an Apple executive revealed that for the first time ever, traditional Google searches in Safari declined in April. Google maintains that search usage is still growing overall, but the data signals a shifting landscape.
Perspective: Big Tech Now Rivals Entire Economies
To put the tech rally in perspective, Meta and Microsoft’s combined value now eclipses that of JPMorgan Chase, the largest U.S. bank and Walmart the largest American retailer, more than seven times over.
Even more staggering, the total market capitalization of just four U.S. tech giants Apple, Alphabet, Meta, and Microsoft now stands at $11.4 trillion, nearly matching the entire public market value of the European Union, which was around $12.5 trillion at the end of 2023.
AI at the Center of Global Market Dynamics
As the tech sector continues to rally around AI innovation, investors are keenly watching how legacy firms adapt and how newer players emerge. While Microsoft and Meta are reaping the early rewards of massive AI investment, the real test may be sustaining that growth amid rising competition and regulatory scrutiny.
“There’s no doubt that AI is reshaping the global tech landscape,” said analyst Julie Morgan of StratEdge Research. “The companies investing early and at scale are winning but the race is far from over.”
Read Also: Google Commits $37 Million to Boost AI Innovation in Africa Amid Growing Global Interest
