Microsoft’s stock skyrocketed Thursday, closing near $451.50 after reporting blockbuster cloud growth and an optimistic forecast for Azure. The 15.5% surge marked the biggest one-day jump since October 2008, adding nearly $450 billion to Microsoft’s market cap and pushing its value to roughly $3.35 trillion.

Fiscal Q4 results stunned investors. Revenue hit $90 billion, an 18% increase year over year, while net income rose 31% to $35.8 billion. Earnings per share climbed 32% to $4.81. But it was the cloud segment that stole the spotlight. Microsoft Cloud revenue climbed 27% to $59.3 billion, with Azure and related services soaring 43%. The company’s massive contracted commercial revenue base expanded 84% to $678 billion, signaling strong future cash flows.

Azure's Momentum and Market Reaction

Azure hit a major milestone, surpassing $100 billion in annual revenue for the first time with 41% growth over the fiscal year. Microsoft 365 Copilot also gained traction, now exceeding 30 million paid seats, with new sign-ups more than doubling recently. Management projects Azure revenue growth near 45% in the current quarter, beating analysts’ expectations and proving demand for AI-powered cloud computing is outpacing available supply.

The market reacted swiftly. Shares gapped up from the low $390s to above $450, peaking intraday near $458.57 before settling. This jump created a new resistance zone near $458-$460, while leaving a large gap below the price that could attract profit-taking and partial retracement.

Technically, Microsoft reclaimed its 200-day moving average around $433.80, signaling renewed bullish momentum after being well below shorter-term averages near $398 and $393.

This record rally highlights how Azure’s explosive growth and AI integration are reshaping investor sentiment, overshadowing concerns about Microsoft’s heavy AI spending. The cloud business now underpins a valuation jump unseen in over a decade, redefining Microsoft’s market positioning.

This material is for informational purposes only and does not constitute financial advice.