Microsoft nears first record high in a year, rebounding over 50% from June low

Shares of Microsoft are approaching their first record close in almost a year, Bloomberg reported. The stock had risen as much as 1.8% on Tuesday to $551.13 per share, surpassing its October 28, 2025, intraday high of just over $550 per share. A close above $542 per share would mark a new all-time high close. As of this writing, the stock had pared its gains and was trading just above $545 per share.

On Monday, Microsoft announced its new Maia 300 AI chips and plans to deploy potentially more than a million of these custom AI accelerators in 2027 to support its AI services. Maia chips are designed for inference, generating responses to user requests, and could help the company reduce its reliance on Nvidia’s more expensive accelerators, which are in short supply.

Microsoft shares have gained more than 50% from their June low, adding roughly $1.5 trillion to the company’s market capitalization as investor sentiment toward Microsoft and its position in AI continues to improve, Bloomberg notes. Just a few months ago, the company was among the worst performers in the S&P 500 amid concerns that massive spending on AI infrastructure was not generating sufficient returns, along with fears that AI could disrupt software providers’ traditional business models.

In June, Microsoft shares plunged 17%, which wiped out almost $600 billion in market value in the stock’s worst month since 2000. The turnaround came after Microsoft’s July 29 earnings report, which showed the fastest revenue growth for its cloud computing business in four years. The stock jumped 16% the next day, setting off a recovery that delivered Microsoft’s best quarterly performance since 1998, Bloomberg noted.

At least two houses upgraded Microsoft to “buy” after the fiscal-fourth-quarter financials, expressing confidence in the company’s ability to capitalize on growing demand for AI services. Of the 72 analysts tracked by Bloomberg who cover Microsoft, 68 recommend buying the stock, and none advise selling. The average target price is $584 per share, implying roughly 8% upside over the next 12 months from Monday’s close, according to Bloomberg data.

Despite its recent rally, Microsoft remains a tech laggard this year because of a weak first-half performance. The stock is up roughly 14% year to date, in line with the S&P 500, while the tech-heavy Nasdaq 100 has gained 21%. Among the Magnificent Seven tech giants, Microsoft’s performance is roughly in line with Meta Platforms, Alphabet, and Amazon, but trails Apple and Nvidia, both of which have gained more than 20% year to date.