Microsoft nears first record close in a year as AI spending fears ease
Microsoft rose as much as 1.8% to $551.13 on Tuesday morning in New York, on track for its first record close since October 2025, after closing Monday at $541.15 and a roughly $4T market value. The stock has gained more than 50% from a June low, adding about $1.5T in market value, after falling 17% in June — its worst month since 2000. The recovery followed Azure growth of 43% versus 40% expected, pushing Azure past $100B in annual revenue for the first time; shares jumped 16% the next day and the company posted its best quarter since 1998. SAP, hit by the same AI-disruption panic, is still down about 35% for the year and traded at €193.91 on Monday, while Microsoft also faces an unresolved June shareholder lawsuit alleging it concealed slowing Azure growth.
Microsoft's violent swing shows that investor faith in AI infrastructure spending ultimately rests on cloud revenue delivery, not on the scale of the spending itself.