🚀 Microsoft (MSFT) Smashes Records: AI Frenzy Sends Stock to Stratospheric Highs

Wall Street's AI hype train has left the station—and Microsoft just hijacked first class.

The Big Tech cash machine keeps printing

Redmond's stock tore past previous peaks as investors doubled down on its ChatGPT-powered enterprise dominance. No slowdown in sight for Nadella's AI empire-building.

When the music stops...

Meanwhile, hedge funds rotate into 'safe' tech bets—because nothing says stability like betting the farm on unproven generative AI revenue streams. The 2025 version of 'this time it's different.'

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

MSFT stock was trading at $499.30 at noon hour and could close above $500 a share on a split adjusted basis. The current rally coming off April lows has pushed Microsoft’s share price up 19% this year and put its market capitalization at $3.70 trillion, second only to Nvidia (NVDA) at $3.84 trillion.

Analysts and traders on Wall Street are now debating which technology giant will be the first to reach a $4 trillion market cap, Microsoft or Nvidia. Several analyst have also been raising their ratings and price targets on MSFT stock during its current bull run. Wedbush tech analyst Daniel Ives raised his price target on Microsoft’s shares to $600 from $515 while reiterating a Buy rating on the stock.

Bullish Sentiment

Analysts and investors are turning increasingly bullish on Microsoft as sentiment towards artificial intelligence (AI) again turns bullish. The Seattle-based technology company’s share price has also been rising since the company reported strong first-quarter financial results in May that included strong growth in its Azure cloud computing unit.

More recently, reports have surfaced that the Windows Maker is planning to cut thousands of jobs as it looks to reduce its labor costs while increasing its AI spending. Microsoft is seen as a leader in generative AI and is cascading the technology across its various business segments and consumer-facing products.

Is MSFT Stock a Buy?

Microsoft’s stock has a consensus Strong Buy rating among 36 Wall Street analysts. That rating is based on 31 Buy and five Hold recommendations issued in the last three months. The average price target on MSFT stock of $518.77 implies 9.22% upside from current levels.