Microsoft ( (MSFT) ) has risen by 9.11%. Read on to learn why.
Microsoft’s stock has seen a notable increase of 9.11% over the past week, driven by strategic adjustments and market expectations. The tech giant is preparing to report its Q3 2025 earnings, with analysts suggesting that Microsoft may lower its Azure cloud growth expectations to better align with market realities. This move is seen as a potential opportunity for long-term investors, as it could help reset expectations and reduce risk around Azure’s growth narrative.
In addition to adjusting its growth forecasts, Microsoft is expected to slow down its capital expenditure on cloud infrastructure, which could positively impact its free cash flow in the coming years. This strategic shift is part of Microsoft’s broader focus on AI-driven demand, leveraging tools like ChatGPT, while navigating a challenging economic environment. The company’s approach has been well-received by analysts, who maintain a strong buy consensus rating on the stock.
The interest in Microsoft’s stock is further fueled by its involvement with OpenAI, which is projecting significant revenue growth in the coming years. As Microsoft holds a substantial stake in OpenAI, the anticipated growth in AI-driven services and tools presents an additional layer of potential upside for investors. With a positive outlook from Wall Street analysts and a strategic focus on AI and cloud services, Microsoft’s stock remains an attractive option for those interested in the tech sector.