Microsoft's Winning Streak Hints at Overheating Technical Picture

Microsoft's recent winning streak is showing signs of overheating, according to technical indicators. The company closed out Friday at €443.25, up 2.2 percent on the day and marking its sixth consecutive session in the green.

The stock has gained 7.1 percent over the past week and a whopping 30 percent month-to-date, pushing the relative strength index to 72.3, firmly into overbought territory.

Much of the enthusiasm can be attributed to the company's AI infrastructure expansion, with the handover of the first data center from IREN under a cloud agreement valued at $9.7 billion being a key catalyst.

Microsoft cited a $50 billion increase in its AI order backlog outside frontier labs such as OpenAI and Anthropic during the Deutsche Bank technology conference, suggesting that enterprise clients are moving from pilot projects to scaled deployments.