On October 13, Microsoft (MSFT.O) saw its stock price rise for four consecutive months, poised to reach its highest closing level in nearly a year. Since hitting a low in June, Microsoft's stock price has surged by over 50%, with its market capitalization increasing by approximately $1.5 trillion, marking a dramatic reversal. Previously, due to investor concerns about insufficient returns from massive spending on artificial intelligence infrastructure and potential disruptive impacts on software vendors, Microsoft was once among the worst-performing stocks in the S&P 500 index, plunging 17% in June and shedding nearly $600 billion in market value. The turning point came on July 29, when Microsoft reported that its cloud computing revenue growth hit a four-year high. The next day, Microsoft's stock price soared 16%, initiating a strong rebound and recording its best quarterly performance since 1998. After the earnings announcement, at least two institutions upgraded Microsoft's stock rating to 'buy,' expressing confidence in its ability to capitalize on the growing demand for artificial intelligence services.
