Microsoft Cloud Growth Remains Strong Amid Elevated Capex

Microsoft shares have surged 31.2% over the past three months, outperforming its industry and sector peers.

The company's cloud business remains a key growth driver, with Azure and other cloud services revenues growing 43% year-over-year in the latest quarter.

Azure revenue surpassed $100 billion for the first time, up 41%, while customer demand continues to exceed available capacity.

Microsoft is investing heavily in its infrastructure, but management says this is being done against durable, broad-based demand rather than speculative buildout.