Microsoft became the second U.S. company to reach a $2 trillion market capitalization in August 2020.
Microsoft crossed the $2 trillion level during trading on June 24, 2021, after Apple had become the first U.S. company to reach it in August 2020. The milestone reflected strong demand for cloud computing, enterprise software, and subscription products.
Microsoft’s transformation went beyond its original personal-computer software business. Azure became a major cloud-computing platform, while Microsoft 365, Windows, gaming, LinkedIn, and business applications created several large revenue streams.
Market-cap rankings can be confused with revenue rankings. A company may have a higher valuation because investors expect faster growth or stronger future profits, even if another company currently reports more sales. Microsoft’s position near the top of global rankings has therefore depended on both financial results and expectations about cloud and AI growth.