Microsoft (MSFT.O) has rallied more than 50% from its June low, adding roughly
$1.5 trillion in market value and is poised to close at a record high for the
first time in nearly a year. The fourth consecutive monthly advance has
accelerated as investor confidence in Microsoft’s AI competitiveness improved.
The stock was among the S&P 500’s worst performers in June, plunging 17% in its
worst month since 2000 and erasing about $600 billion of market value. The
reversal began after the July 29 earnings release, when cloud revenue growth hit
its fastest pace in four years; the shares jumped 16% the next day and Microsoft
posted its strongest quarterly performance since 1998. At least two firms have
since upgraded the stock to buy, citing confidence in Microsoft’s ability to
capture rising AI services demand.
