Microsoft Stock Hits All-Time High on AI, Cloud Growth

Microsoft's stock has reached new all-time highs above $475, driven by strong investor confidence in its leadership in artificial intelligence and cloud computing. The company’s deep integration of AI across Azure, Microsoft 365 Copilot, and its partnership with OpenAI has fueled robust revenue growth, with Azure's revenue soaring 33% last quarter and AI services accounting for nearly half of that growth. Technical indicators, including a bullish 'golden cross' and momentum metrics, suggest the stock may continue climbing toward the $480 to $500 range, although some caution is warranted due to declining trading volumes. Microsoft’s cloud services demand remains strong, with projections of double-digit revenue growth for fiscal 2025 and ongoing investments to expand data center capacity amid high demand. The company’s premium valuation is supported by consistent earnings, free cash flow, and a 0.7% dividend yield, making it a favored choice for long-term institutional investors. Overall, Microsoft is positioned to maintain momentum through its AI-driven innovation and hybrid cloud capabilities, solidifying its role as a key player in the tech sector.