Microsoft’s Stunning Reversal: Stock Rebounds Over 50% From Its June Lows, Eyeing All-Time High

As Microsoft (MSFT.O)’s four-month stock rally continues to accelerate, the company’s shares are on track to hit their first closing all-time high in nearly a year. Amid growing market confidence in Microsoft’s competitive position in artificial intelligence (AI), the stock has risen over 50% since its June low, adding roughly $1.5 trillion to its market capitalization. This milestone marks a dramatic reversal for Microsoft’s share price. Just months ago, the tech giant was among the worst-performing stocks in the S&P 500, as investors worried that its massive AI infrastructure spending was failing to deliver sufficient returns and that the software provider could face disruptive shocks. The stock plummeted 17% in June, its worst monthly performance since 2000, erasing nearly $600 billion in market value. The turning point came on July 29, when Microsoft released earnings showing its cloud computing business grew at its fastest pace in four years. The next day, the stock surged 16%, kicking off a strong rebound that led to Microsoft’s best quarterly performance since 1998. Following the July earnings release, at least two institutions upgraded Microsoft’s stock rating to "Buy", citing confidence in the company’s ability to capitalize on growing demand for AI services.