Microsoft sets another record as stock all-time high and why Wall Street sees no bubble in these BIG numbers

Microsoft Corp. shares surged to a record high on Thursday, surpassing a peak from nearly a year ago, as investors increasingly view the tech giant as a prime beneficiary of the artificial intelligence boom, according to Bloomberg. The stock climbed 0.8% to close at $467.68, topping its previous high set in July. This milestone caps a robust recovery, with Microsoft’s shares rallying over 30% from an April low, boosting its market capitalization by more than $800 billion. At approximately $3.48 trillion, Microsoft now holds the title of the world’s largest company, just edging out Nvidia Corp., another AI powerhouse, valued at $3.42 trillion, says the report.Microsoft’s stock has gained 11% in 2025, outpacing the Nasdaq 100 Index, per Bloomberg data.The company’s latest earnings underscored its strong position in AI, alleviating concerns about the returns on its substantial investments in the technology. Robust demand for Microsoft’s cloud computing and AI services, coupled with solid growth trends, has positioned the company as a stable force amid economic uncertainties and potential tariff challenges, according to Bloomberg.“Microsoft is well positioned across its product lines, with a real ability to monetize AI,” Jim Awad, senior managing director at Clearstead Advisors, told Bloomberg. “I think when we look back in three or four years, it will be one of the companies that prospered and benefited from AI the most.”

Despite being the last of the Magnificent Seven stocks to hit a new all-time high, Microsoft remains a favorite among investors. Bloomberg notes that Bank of America data shows Microsoft as the most-owned stock by long-only funds, with 91% holding positions. Additionally, over 90% of analysts tracked by Bloomberg recommend buying the stock, with no sell ratings.While such overwhelming optimism could signal caution, Wall Street remains bullish. The average analyst price target suggests nearly double-digit upside potential over the next 12 months, Bloomberg reports. “Microsoft should continue growing at an impressive rate and the stock in no way looks excessively priced,” Awad told Bloomberg. “It can be uncomfortable when everyone is on the same side of a consensus, but in this case, I think the consensus is right.”