Microsoft NASDAQ:MSFT stock is in focus after the company added nearly $450 billion to its market value in a single session on Thursday, gaining 15%, as strong cloud growth eased concerns about its heavy artificial intelligence spending.
The rally followed Microsoft's quarterly results, with Azure revenue climbing 43%, above the 40.9% growth analysts had expected. The performance gave investors more evidence that demand for cloud and AI services is translating into higher sales.
Goldman Sachs analyst Gabriela Borges remains bullish on Microsoft, pointing to signs that the company has more ways to monetize its AI investments. Her view comes as investors increasingly focus on the revenue generated from AI infrastructure rather than the size of Microsoft's spending.
Microsoft's one-day market-value increase was among the largest ever recorded for a U.S. company. The surge also prompted several Wall Street firms to raise their price targets, according to the source.
For Microsoft investors, the key question is whether strong Azure growth can continue to offset the enormous cost of expanding AI infrastructure. Thursday's results offered a positive signal, but future returns will depend on sustained cloud demand and successful AI monetization.