This article first appeared on GuruFocus.
Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) sit within striking distance of a $4 trillion market valuation and remain the likeliest candidates to clear that threshold in 2026, analysts say.
Microsoft trades near $475.57 a share, valuing the company at about $3.55 trillion. The software and cloud provider benefits from strong enterprise demand for artificial intelligence tools, including its Copilot model and a strategic relationship with OpenAI, and continued growth in Azure.
Revenue rose from $211.9 billion in 2023 to roughly $293.8 billion for the 12 months ended Sept. 30, 2025, and the average Wall Street 12-month target implies a roughly 32% upside to about $631.36.
Apple’s market capitalization stands near $3.85 trillion, meaning a modest share-price gain could push it past $4 trillion. The company recently agreed to use Google AI as a foundation for its Apple Foundation Models, a move analysts view as a catalyst. Wall Street’s average 12-month target implies roughly a 15% gain.
Both firms face risks tied to the pace of AI adoption and potential regulatory or cost pressures, including proposals to shift data-center electricity costs to operators. Recent share pullbacks since December temper near-term expectations but leave longer-term upside intact, analysts say.
