Microsoft Stock Rockets to All-Time High After Major AI Announcement—Is MSFT Still a Buy?

Microsoft stock (NASDAQ: MSFT) extended its autumn rally in Thursday’s pre-market session, edging above $520 after closing at $519.71 on Wednesday, its highest finish since mid-September. H2: AI-fueled momentum keeps MSFT near record highs Investors continue to bid up Microsoft stock as the company doubles down on artificial intelligence. Management disclosed more than $30 billion in cloud and AI capital expenditures for the current quarter, underscoring confidence in generative-AI demand. Azure revenue growth is widely expected to accelerate for a third straight quarter, driven by tight integration with OpenAI’s latest models. H2: Street raises the bar—$625 price target from Morgan Stanley Morgan Stanley reiterated its Overweight rating this week and lifted its 12-month price objective to $625, citing Microsoft’s “best-in-class” AI stack and expanding margin profile. The new target implies roughly 20 % upside from current levels and places MSFT among the brokerage’s top large-cap picks for 2026. H2: Key catalysts investors are watching • Earnings: Microsoft reports fiscal Q1 2026 results after the bell on October 29, 2025; consensus calls for EPS of $3.87 on revenue of $76.4 billion. • Product launches: The newly released Microsoft 365 Premium bundles Copilot AI at $19.99 per month, potentially boosting recurring revenue. • Regulatory landscape: The EU’s Digital Markets Act compliance deadline in March 2026 could shape how Microsoft packages Windows, Teams, and Copilot. H2: Technical snapshot MSFT trades above its 50- and 200-day moving averages, with $505 acting as near-term support. A breakout past the all-time intraday high of $555 would open the door to the $600–$625 analyst target zone. H2: Bottom line Between record AI investment, rising analyst targets, and a pivotal earnings print later this month, Microsoft stock remains in focus for growth-oriented investors. While volatility may spike around results, secular AI and cloud tailwinds continue to favor a long-term bullish narrative. (This article is for informational purposes only and does not constitute investment advice.)