Microsoft announced $281.7 billion in sales for the whole fiscal year 2025, a 15% increase over the previous year.

Microsoft’s earnings, which were $110.4 billion in 2018, have more than quadrupled.

As further usage of AI opens up even more opportunities, Zino believes Microsoft is set for a similar run over the next six or seven years, during which time it may experience an annual revenue rise of 10%.

According to Zino, “if we get to the point where supply for AI exceeds demand,” that would be the largest danger to this view and the AI boom in general. “That might put pressure on cloud computing and space pricing.”

Even while firms like Microsoft want to invest $100 billion or more year in capital expenditures to expand their capacity, the historic valuation is the most recent indication of rising optimism over an AI investment boom that market observers think is still in its early stages.

Microsoft concluded another year of growth in the face of enormous customer interest in the company’s cutting-edge AI capabilities with a profit of $27.2 billion on sales of $76.4 billion in its fiscal fourth quarter.

After surpassing the barrier earlier, Microsoft’s market value was just under $4 trillion, with shares up 4.3 percent just after lunchtime. Tickets for the Abuja Formula 1 Grand Prix

According to Microsoft CEO Satya Nadella, “Cloud and AI are the driving force of business transformation across every industry and sector.” “To help customers grow and adapt in this new era, we’re innovating across the tech stack.”

During an earnings conference call, Wall Street analysts praised the company’s performance, pointing out that it had established new data centers on six continents in the last year and bragged of significant contracts with multinational corporations like Nestle and Barclays.

When the introduction of ChatGPT in 2022 shook the IT world, Microsoft was among the first major corporations to make a significant investment in artificial intelligence.

Since 2019, Microsoft and OpenAI, the company behind ChatGPT, have maintained a strategic relationship in which Microsoft owns intellectual property rights.

According to Angelo Zino, a technology analyst at CFRA Research, the company’s traditional cloud computing platform, Azure, had a startling 39% increase in value, which was the main driver of the results. Azure is being “supercharged” with AI.

Zino said AI was responsible for “almost all” of Microsoft’s recent value increase.

Microsoft’s AI capabilities are expected to help all of these companies.

Zino said, “We consider (Microsoft) to be the enterprise king.” “What AI does is give this company new growth opportunities.”