Microsoft Surges $450 Billion on Strong Cloud Growth
Microsoft's stock price surged by 16% on Thursday, adding approximately $450 billion to its market capitalization in one session. This dramatic single-day move surpassed the previous record of around $440 billion set by Nvidia and marked Microsoft's strongest daily gain since October 2008.
The rally was driven by stronger-than-expected cloud growth, with Azure revenue rising 43% during the fiscal fourth quarter, accelerating to its fastest growth rate since early 2022. Management expects Azure growth of around 45% in the current quarter, indicating that demand for cloud computing and AI infrastructure remains exceptionally strong.
The company's cloud business is a key driver of its growth, with Azure generating over $100 billion in annual revenue for the first time during the fiscal year ending in June. Microsoft's investments in AI are also starting to produce visible commercial results, with more than 30 million paying users for Microsoft 365 Copilot, up from around 20 million only three months earlier.