IT Home, October 14: According to Bloomberg's report on the evening of the 13th, Microsoft's stock rose 0.4% on the day, closing at $543.45 (IT Home note: approximately RMB 3,644 at current exchange rates), marking its first all-time high in nearly a year and continuing its strong upward momentum over the past four months.
Microsoft's stock has surpassed its previous high set in October 2025. Since the June low, Microsoft has risen over 54%, adding approximately $1.4 trillion in market capitalization (equivalent to about RMB 9.39 trillion at current exchange rates), reflecting growing investor confidence in Microsoft and its position in the AI sector.
A few months ago, Microsoft was one of the worst-performing stocks in the S&P 500. At the time, investors were concerned that Microsoft’s massive investments in AI infrastructure were not yielding sufficient returns, while also worrying about potential disruptions to the software industry.
In June this year, Microsoft's stock plunged 17%, marking its worst monthly performance since 2000, with its market value shrinking by nearly $600 billion (approximately RMB 4.02 trillion at current exchange rates). Looking back, this historic decline signaled a complete reversal of Microsoft's previous downward trend.
The earnings report released on July 29 became a turning point. Microsoft’s cloud computing revenue growth hit its highest level in four years, driving a 16% surge in its stock price the following day. Since then, Microsoft has continued its rebound, delivering its best quarterly performance since 1998.
After the earnings report, at least two institutions upgraded Microsoft's stock rating to "Buy," citing Microsoft's ability to benefit from growing demand for AI services.
Of the 72 analysts tracked by Bloomberg, 68 recommended buying Microsoft stock, with none recommending a sell; the average target price is $584 (approximately RMB 3,916 at current exchange rates), about 8% higher than Tuesday’s closing price, reflecting analysts’ expectations of potential upside over the next 12 months.
Despite a strong rally over the past few months, Microsoft’s overall performance this year has been held back by a weak first half, resulting in a cumulative gain of approximately 12%. In comparison, the Nasdaq 100 Index has risen 21% over the same period, and the S&P 500 Index has gained 14%.
Among the U.S. tech giants, Microsoft's year-to-date gain is similar to that of Alphabet, Google's parent company, and Amazon, but lags behind Meta, Apple, and NVIDIA, all of which have seen their stock prices rise by more than 15%.