Microsoft poised for US$4 trillion valuation after solid results
The software company forecast a record US$30 billion in capital spending for the current fiscal first quarter and reported booming sales in its Azure cloud computing business on Wednesday.
Shares of Microsoft were up 8.5 per cent at US$557.03 in early premarket trading, valuing it at US$4.14 trillion.
Redmond, Washington-headquartered Microsoft first cracked the US$1 trillion mark in April 2019.
Its move to US$3 trillion was more measured than other tech giants, Nvidia and Apple, with AI bellwether Nvidia tripling its value in just about a year and clinching the US$4 trillion milestone before any other company on Jul 9. Apple was last valued at US$3.12 trillion.
Lately, breakthroughs in trade talks between the US and its trading partners ahead of President Donald Trump's August one tariff deadline have buoyed stocks, propelling the S&P 500 and the Nasdaq to record highs.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Microsoft, the second largest US company, has rebounded nearly 50 per cent from its April 2025 lows, when global markets were rattled by Trump's tariff offensive.
Microsoft's multibillion-US dollar bet on OpenAI is proving to be a game-changer, powering its Office Suite and Azure offerings with cutting-edge AI and fuelling the stock to more than double its value since ChatGPT's late-2022 debut.
Armed with exclusive access to OpenAI's models, Microsoft has raced to the front of the generative AI pack – supercharging its Azure cloud business, now the company's top revenue driver, and solidifying its dominance in the tech landscape, compared to Google's cloud and Amazon's Web services.
Wall Street's surging confidence in the company comes on the heels of back-to-back record revenues for the tech giant since September 2022.
The stock's rally had also received an extra boost as the tech giant trimmed its workforce and doubled down on AI investments – determined to cement its lead as businesses everywhere race to harness the technology.
While sweeping US tariffs had investors bracing for tighter business spending, Microsoft's strong earnings have shown that the company's books are yet to take a hit from the levies. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
14 minutes ago
- Business Times
Chinese builder Fantasia to unveil new restructuring plan
[BEIJING] Chinese developer Fantasia Holdings Group plans to release a new restructuring plan in the coming weeks after previous attempts fizzled, people familiar with the matter said, underscoring the years-long struggle of builders to move past an unprecedented property crisis. The company has been working on the latest plan, which would enable it to deleverage further, with a key group of creditors, according to the people, who asked not to be identified discussing private matters. Details are still being finalised, they added. It would be the latest proposal in a string of restructuring attempts by the firm, whose default on dollar debt in 2021 was a harbinger of China's real estate crisis. The broader woes have led to record defaults among builders and are still weighing on housing demand. While Premier Li Qiang recently pledged to stabilise the property market, home prices in June dropped 0.27% from the prior month, the most in eight months. Fantasia issued its first debt restructuring proposal in January 2023, only to release a revised version in April 2024 that included longer extension periods and lower coupon rates on new notes and other terms that were less favorable to creditors. Calls and emails to Fantasia went unanswered. Fantasia's total liabilities stood at US$11.7 billion as of the end of 2024, according to its latest annual report. BLOOMBERG
CNA
44 minutes ago
- CNA
Taiwan to seek lower tariff after Trump's 'temporary' 20% levy
TAIPEI: Taiwan vowed on Friday (Aug 1) to seek a lower tariff after Donald Trump imposed a "temporary" 20 per cent levy on its shipments to the United States as part of his trade war. The US president's announcement was part of a sweep of measures - reaching 41 per cent - against dozens of global partners as they scrambled for deals with Washington to avert the painful tolls. The figure is down from the 32 per cent toll imposed in his Apr 2 "Liberation Day", since when Taipei and Washington have held four rounds of face-to-face talks and multiple video conferences to resolve the issue. On Friday, Taiwan President Lai Ching-te said on Facebook they were still working to strike an agreement. "The US has announced a temporary 20 per cent tariff for Taiwan, with the possibility of further reductions should an agreement be reached," he wrote. "The government will continue to strive for a reasonable tariff rate and complete the final stages of the tariff negotiations." While Trump had set Friday as the deadline for agreements to be made, he delayed it until the end of next week. No timeline was given for Taiwan, which could mean the island was caught in the middle of US-China trade negotiations, said Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. Washington and Beijing held two days of talks this week aimed at reaching a deal to extend a truce in their trade war and prevent the reimposition of sky-high tariffs on Aug 12. "The conditions on Taiwan might be relevant for China, imagine export controls," Garcia-Herrero told AFP. After US tech giant Nvidia announced it will resume sales of its H20 AI chips to China, Garcia-Herrero said "there could be other stuff that China needs from Taiwan that the US can offer". "THIS IS THE CEILING" Taiwan is a global powerhouse in chip manufacturing, with more than half the world's semiconductors and nearly all of the high-end ones made there. The owner of a Taiwanese machinery exporter to the United States said he was worried that lower tariff rates on Japan and South Korea - 15 per cent - would advantage his competitors there. He told AFP the recent appreciation in the Taiwan dollar against the greenback had also "put a lot of pressure on us, creating a double whammy". The uncertainty over tariffs was hurting US sales, said textile producer Eddie Wang, with clients "feeling overwhelmed" and reluctant to place orders. Soaring demand for AI-related technology has fuelled Taiwan's trade surplus with the United States - and put it in Trump's crosshairs. Around 60 per cent of Taiwan's exports to the United States are information and communications technology, which includes chips. In a bid to avoid the tariffs, Taipei has pledged to increase investment in the United States, buy more of its energy and increase its own defence spending. Economist Sun Ming-te said the 20 per cent levy was "probably the best outcome Taiwan can achieve with the US under the current conditions."
Business Times
44 minutes ago
- Business Times
Indonesia's exports rise again in June as US-bound shipments jump
[JAKARTA] Indonesia's exports rose in June as exporters sought to beat the US tariff deadline and shipments of palm oil and gold jewellery increased, while inflation accelerated in July, official data showed on Friday. June shipments from South-east Asia's biggest economy jumped 11.29 per cent on a yearly basis to US$23.44 billion, higher than the 10.41 per cent forecast by economists polled by Reuters. Exports rose 9.68 per cent in May. Excluding oil and gas, June shipments to the US rose 33.5 per cent on a yearly basis. Top Indonesian products sold to US buyers included electrical machinery, clothing, footwear, palm oil, rubber and seafood. Shipments of palm oil from the world's biggest producer surged 15.1 per cent in June, while gold and jewellery exports more than doubled from the same month in 2024. Imports in June rose 4.28 per cent on a yearly basis to US$19.33 billion, below the poll's forecast of 6.5 per cent. The result was a bigger-than-expected trade surplus of US$4.11 billion in June, above the poll's expectation of US$3.45 billion, but down slightly from May's US$4.30 billion. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Indonesian exporters in recent months have brought forward shipments to the United States ahead of President Donald Trump's Aug 1 deadline for tariff negotiations. Washington set Indonesia's import tariff at 19 per cent under a deal agreed in July, from threatening a 32 per cent levy earlier, after Jakarta agreed to eliminate most tariffs affecting US industrial and agricultural products and to buy more American goods. Trump has issued an executive order saying the new tariff rates will be implemented in seven days. Indonesia's trade surplus may be squeezed as the tariffs take effect, with imports likely to rise and exports affected by lower prices of its top commodities, such as coal, Bank Danamon economist Hosianna Situmorang said. Meanwhile, Indonesia's July annual inflation accelerated to 2.37 per cent on an annual basis, more than the 2.25 per cent expected by analysts, reflecting higher prices of foods such as shallots, rice, and tomatoes, as well as rising utility and education costs. Annual core inflation, which strips out government-controlled and volatile food prices, was 2.32 per cent in July, compared with an analyst estimate of 2.37 per cent. Both rates remained within the central bank's target range of 1.5 per cent to 3.5 per cent. Bank Indonesia has cut interest rates four times since September, citing low inflation and a need to support economic growth. Josua Pardede, an economist at Bank Permata, said despite the impact of the tariffs on Indonesia's external position, the current account deficit was likely to remain manageable. 'This underpins our call for up to 50 bps BI-rate cuts in 2025,' Pardede said. REUTERS
