Microsoft stages stunning reversal: Stock rebounds over 50% from June low, eyes record high

BlockBeats news, October 13 — As Microsoft's (MSFT.O) four-month stock rally further accelerates, the company's shares are poised to set a record closing high for the first time in nearly a year. With market confidence in Microsoft and its competitive position in the AI sector continuing to improve, the stock has gained more than 50% since its June low, adding approximately $1.5 trillion in market value. This milestone marks a dramatic reversal for Microsoft's stock price.

Just a few months ago, amid investor concerns that massive AI infrastructure spending was not generating sufficient returns and that software vendors could face disruptive shocks, Microsoft was once among the worst performers in the S&P 500. The stock plunged 17% in June, its worst monthly performance since 2000, wiping out nearly $600 billion in market value. The turning point came on July 29.

Microsoft's earnings report showed that its cloud computing business revenue growth hit its fastest pace in four years. The stock surged 16% the next day, kicking off a strong rebound and driving Microsoft to its best quarterly performance since 1998. After the July earnings release, at least two institutions upgraded Microsoft's stock rating to buy, expressing confidence in Microsoft's ability to capture growth opportunities in AI services demand.