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Key Points
Microsoft (NASDAQ: MSFT) recently surpassed the $4 trillion market cap threshold, joining Nvidia (NASDAQ: NVDA) as one of the only two companies to achieve this milestone. The climb from $4 trillion to $5 trillion is expected to be easier, requiring only a 25% rise compared to a 33% increase from $3 trillion to $4 trillion.
Microsoft’s Intelligent Cloud division, particularly Azure, is experiencing significant growth, capitalizing on the booming demand for cloud computing and AI workloads. In contrast, Nvidia is projected to see its data center capital expenditures rise from $400 billion in 2024 to $1 trillion by 2028, indicating robust growth potential despite current challenges such as export license issues with China impacting its recent net income figures.
For Q4 of fiscal 2025, Microsoft reported a 24% increase in net income, while Nvidia anticipates a 26% rise in Q1 fiscal year 2025. Despite current income disparities, Nvidia’s faster growth may position it to reach the $5 trillion market cap ahead of Microsoft.
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