Microsoft Shares Rebound on AI

Microsoft's shares are nearing record highs, fuelled by renewed growth in its Azure cloud-computing business. This resurgence follows a period of underperformance, with investors now optimistic about the company's prospects. Azure's growth is attributed to increased adoption of AI solutions by enterprise clients. Microsoft's financial results for Q3 2025 exceeded expectations, with revenue up 13% year-over-year to $70.1 billion. The Intelligent Cloud segment, including Azure, surged by 21%, and Azure alone grew 33% year-over-year. Microsoft is investing heavily in AI, with capex projected to rise sequentially.

CEO Satya Nadella highlighted the role of the Microsoft Cloud and AI in driving productivity and cost efficiencies for organisations. Microsoft is also focused on expanding its AI infrastructure and capabilities through partnerships with companies like OpenAI and Nvidia. Analysts predict continued growth in AI revenue, potentially exceeding $50 billion by fiscal year 2027. Microsoft's strong performance in cloud and AI positions it well for future growth, despite competition and regulatory challenges.