Microsoft has soared past a $4 trillion market valuation, becoming the second publicly traded company after Nvidia to hit the milestone.

The surge follows a stellar earnings report and a bold forecast of $30 billion in capital spending for the current fiscal quarter—its largest ever—as it races to meet rising demand for artificial intelligence.

Shares in the Redmond, Washington-based tech giant jumped 6.6% to $546.33 in early Thursday trading. The company reported strong growth in its Azure cloud business and emphasized continued investment in AI, fueled in part by its multibillion-dollar partnership with OpenAI.

“It is in the process of becoming more of a cloud infrastructure business and a leader in enterprise AI, doing so very profitably and cash generatively despite the heavy AI capital expenditures,” said Gerrit Smit, portfolio manager at Stonehage Fleming’s Global Best Ideas Equity Fund.

Microsoft first crossed the $1 trillion mark in 2019 and reached \$3 trillion earlier this year. Its rise has been steadier than Nvidia, which tripled its value in just over a year to reach the \$4 trillion mark earlier this month. Apple, by contrast, is currently valued at $3.11 trillion.

The broader tech rally has been boosted by recent optimism around U.S. trade negotiations and investor enthusiasm for AI. Meta Platforms and Alphabet have also raised their capital spending forecasts in recent days, underlining Silicon Valley’s intensifying race to lead in AI infrastructure.

Meta surprised investors with a bullish third-quarter revenue forecast, while Amazon—still the largest U.S. cloud provider—is set to report earnings later today. Its shares rose 1.7% in anticipation.

Despite concerns over new U.S. tariffs, Microsoft’s performance signals that tech giants remain resilient, with AI innovation driving both demand and investor confidence.