Microsoft hits first record in a year after US$1.4 trillion rally; shares soar 54% from June low
This caps a dramatic rebound for the firm that months ago was among the S&P 500 Index’s worst performers
Microsoft shares hit a record high on Tuesday (Oct 13) following a four-month rally, with the stock rising 0.4% to US$543.45. The software giant has gained over 54% from a June low, adding approximately US$1.4 trillion in market value. This milestone marks a dramatic reversal for Microsoft, which had been among the worst performers in the S&P 500 Index just months prior.
Concerns about AI infrastructure spending not generating sufficient returns and potential disruption to software providers initially drove the stock down 17% in June 2026, erasing nearly US$600 billion in market value. However, a strong earnings report on Jul 29 revealed the fastest revenue growth for Microsoft's cloud computing business in four years.
This prompted a 16% jump in the stock the following day, setting the stage for the current rebound. Currently, 68 out of 72 analysts tracking Microsoft have buy ratings, with no sell ratings. The average price target of US$584 suggests an upside potential of about 8% over the next 12 months from Tuesday's close. Despite Microsoft's recent gains, the stock remains a laggard in 2026, having risen only about 12% year-to-date, compared to advances of 21% for the tech-heavy Nasdaq 100 Index and 14% for the S&P 500.
Among the Magnificent Seven tech giants, Microsoft's performance is roughly in line with Alphabet and Amazon.com, but lags behind Meta Platforms, Apple, and Nvidia, which have all risen more than 15% over the same period.
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