Microsoft hits first record in a year after US$1.4 trillion rally; shares soar 54% from June low

[CHICAGO] Microsoft shares hit their first record in about a year on Tuesday (Oct 13) as the software maker’s four-month rally gains momentum.

The stock rose 0.4 per cent to US$543.45, taking out a previous high that had stood since October 2025.

Microsoft has gained more than 54 per cent from a June low, adding roughly US$1.4 trillion in market value, as sentiment towards the company and its position in artificial intelligence continues to improve.

The milestone caps a dramatic reversal for Microsoft, which just a few months ago was among the worst performers in the S&P 500 Index amid concerns that heavy spending on AI infrastructure was not generating sufficient returns, as well as fears about potential disruption facing software providers.

The stock dropped 17 per cent in June, its worst month since 2000, erasing nearly US$600 billion in market value.

That all changed with a Jul 29 earnings report that revealed the fastest revenue growth for Microsoft’s cloud computing business in four years.

The stock jumped 16 per cent the following day, setting the stage for a rebound that resulted in Microsoft’s best quarterly showing since 1998.

At least two firms raised their ratings on the stock to buy in the wake of the July earnings report, expressing confidence in Microsoft’s ability to capitalise on demand for AI services.

Of the 72 analysts tracked by Bloomberg that cover Microsoft, 68 now have buy ratings and there are no sells.

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The average price target on the stock of US$584, implies upside of about 8 per cent over the next 12 months from Tuesday’s close, according to data compiled by Bloomberg.

Despite Microsoft’s recent gains, the stock remains a laggard in 2026 due to its first half slump. The shares have risen about 12 per cent in 2026 so far, compared with an advance of 21 per cent for the tech-heavy Nasdaq 100 Index and 14 per cent for the S&P 500. 

Of the so-called Magnificent Seven tech giants, Microsoft’s performance is roughly in line with Alphabet and Amazon.com, but lags Meta Platforms, Apple and Nvidia, which are all up more than 15 per cent. BLOOMBERG