Background on Microsoft and Its Founder, Bill Gates
Microsoft, the software giant founded by Bill Gates, has recently consolidated its position as the world’s most valuable company. The company’s stock prices surged, bringing it closer to its all-time high and surpassing competitors like NVIDIA and Apple in market capitalization.
Market Capitalization Milestones
- On May 1, Microsoft overtook NVIDIA, reaching a market cap of $3.424 trillion compared to NVIDIA’s $3.304 trillion.
- Microsoft surpassed Apple on March 25, with a market cap of $3.424 trillion compared to Apple’s $2.990 trillion.
Ranking Among Other Tech Giants
- NVIDIA, in second place, saw its stock rise 3.21% to $135.50 per share, giving it a market cap of $3.304 trillion.
- Apple, now in third place, experienced a 2.54% increase to $200.23 per share, resulting in a market cap of $2.990 trillion.
- Amazon, in fourth place, climbed 2.50% to $206.02 per share, with a market cap of $2.187 trillion.
- Alphabet, parent company of Google, advanced 2.62% to $172.88 per share, securing a market cap of $2.103 trillion and placing it fifth.
Impact of U.S.-EU Trade Developments
The rise in tech stocks, including Microsoft’s, can be attributed to U.S. President Donald Trump’s announcement of a delay in imposing 50% tariffs on the European Union until July 9. This move has given investors more time to negotiate bilateral agreements, boosting market confidence.
“The current market rallies are not due to positive news, but rather the least bad option: once Trump or his administration soften an irrational stance,” stated analysts from CiBanco in a report.
Furthermore, new agreements between the U.S. and its major trading partners could potentially strengthen market confidence even more.
Anticipation of Corporate Results
NVIDIA, a leading AI company, will be in the spotlight this week as it releases its first-quarter fiscal 2026 results after market close on Wednesday. Investors are eager to learn how NVIDIA plans to navigate trade-related challenges, including tariffs and concerns over its Blackwell chips.
In the current volatile market environment, NVIDIA’s guidance for the upcoming quarter and full year will be of exceptional importance.
Wall Street Closes with Gains
Major U.S. stock indices rose on Tuesday, fueled by investors’ risk appetite supported by the tariff truce and the collective strength of the “Seven Magnificent” AI-related companies.
- The S&P 500 increased by 2.05% to 5,921.54.
- The Nasdaq Composite gained 2.46% to 19,199.16.
- The Dow Jones Industrial Average rose 1.78% to 42,343.65.
The S&P 500 is now just 5% away from its all-time high on February 19, having plummeted 18.9% below that level due to Trump’s erratic tariff announcements throughout his second term, which have significantly impacted the markets.
