Microsoft Corp. Adds $450 Billion in Market Value Following Azure Growth

Microsoft Corp. added nearly $450 billion to its market value during a single trading session on Thursday, marking one of the largest one-day gains ever recorded for a U.S. company. The 15% surge in stock price followed quarterly results showing that Azure revenue grew by 43%, exceeding analyst expectations of 40.9% and surpassing $100 billion in annual revenue.

The performance eased investor concerns regarding heavy spending on artificial intelligence infrastructure by demonstrating that AI demand is translating into higher sales. Overall fiscal fourth-quarter revenue for the company rose 18% year-over-year to approximately $90 billion.

In response to the results, Goldman Sachs Group Inc. added the company to its U.S. Conviction List and raised its price target to $640 from $610. Analysts at the firm cited the company's ability to convert AI into recurring enterprise revenue through Copilot adoption and its software ecosystem. Goldman Sachs Group Inc. projects that earnings per share growth will accelerate from 12% in fiscal 2027 to over 20% by fiscal 2029, noting a shift in investment toward businesses delivering measurable returns.