Microsoft Stock Rises, Hitting $4 Trillion Market Cap

Microsoft Chairman and Chief Executive Officer Satya Nadella arrives on stage during the Microsoft Build opening keynote at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024. (Jason Redmond / AFP via Getty Images)

Key Points

• Microsoft’ is in positioni to close with a market capitalization exceeding $4 trillion for the first time.
• The company announces a new agreement with OpenAI, granting both greater independence for third-party artificial-intelligence projects.
• Microsoft is set to report fiscal first-quarter earnings, with all Wall Street analysts rating the stock a Buy or equivalent.

Microsoft was on track Tuesday to join Nvidia in the $4 trillion club.

Shares were up 2% to $541.99 on Tuesday, putting the Redmond, Wash.-based company on pace to close with a market capitalization above $4 trillion for the first time. Microsoft will reach that mark if shares close at $538.13 or higher, according to Dow Jones Market Data.

Microsoft briefly hit $4 trillion on July 31 before closing just short of the milestone. Shares have stagnated for much of the time since then, but the stock has now climbed for eight consecutive days, rising roughly 6% over that period, according to Dow Jones Market Data.

The achievement would come during a busy week for the company. On Tuesday, it revealed a 27% ownership stake in longtime partner OpenAI, which is valued at $500 billion after its latest funding round. Meanwhile, a new agreement grants both parties greater independence to work with third parties on artificial-intelligence projects.

Microsoft is also scheduled to report fiscal first-quarter earnings after the market closes Wednesday. Expectations are sky high, with 100% of Wall Street analysts polled by FactSet rating Microsoft stock a Buy or equivalent.

Apple momentarily joined Microsoft and Nvidia above the $4 trillion mark on Tuesday morning, after the company closed Monday with a market cap of $3.99 trillion. Shares of the iPhone maker were roughly flat at $268.87 later in Tuesday’s session. Apple will reach $4 trillion if shares close at $269.54 or higher, according to Dow Jones Market Data.

Write to Nate Wolf at nate.wolf@barrons.com