Microsoft shares surged 15.51% in a single day, reaching a record market capitalization of $3.35 trillion.
Microsoft shares experienced a significant rally, closing up 15.51% in a single session. This move represents the company's largest single-day percentage gain since October 2008 and pushed its market capitalization to a record $3.35 trillion, surpassing Nvidia Corp. This growth was driven by a fourth-quarter report that exceeded expectations across several key metrics, including revenue of $90 billion and adjusted earnings of $4.74 per share. The Azure cloud business showed strong acceleration, with revenue jumping 43% and crossing the $100 billion mark for the first time in a full fiscal year. While the stock's rapid rise is notable, historical data suggests a cautious approach for investors. Historically, Microsoft's 15% gains have occurred during market crashes rather than bull markets. The company's capital expenditures reached $41 billion, slightly below analyst expectations, and management guided to a continued investment in AI infrastructure. CFO Amy Hood stated that efficiency gains are being quickly monetized, providing evidence that the Microsoft AI buildout is producing faster growth.