Microsoft sets record with near $450 billion single-day gain in market value

Microsoft added nearly $450 billion in market value on Thursday, the ​largest one-day gain on ​record for a company, after it forecast stronger-than-expected ​cloud growth and signaled continued cash generation through its new fiscal year.

The software giant's shares closed up more than 15%, lifting its market capitalization to $3.35 trillion, ‌surpassing chip ⁠giant Nvidia's ⁠previous record one-day gain of $441 billion on April 9, 2025, according to LSEG data.

"Microsoft reported a very strong quarter and it struck the tone markets ​are looking to hear as the key drivers of growth came from the cloud and AI divisions," said Brian Mulberry, chief market ​strategist at Zacks Investment Management.


The results offered ⁠fresh evidence ‌that Microsoft's massive AI investments are beginning to pay off, helping ease investor concerns that heavy spending on ⁠data centers and computing infrastructure could outpace demand.

Microsoft has ​lagged some of its "Magnificent Seven" peers this year, ​with its stock down more than 18% up to Wednesday's close.

At least nine brokerages raised the target price on the stock, with the mean target now $560.90.

Microsoft said its spending plans remain unchanged and that it expects capital expenditures of $50 billion for the ‌fiscal first quarter of 2027 and $175 billion for the 2026 calendar year.

In its first quarter, Microsoft expects Azure ​to grow 45% ​on a constant-currency ⁠basis, well above analysts' estimate of a 40.92% increase, according to Visible Alpha data.

"The key question was whether it could shift the conversation ​from how much it is spending on AI to what it is earning from those investments, and the results suggested meaningful progress," Direxion's head of capital markets, Jake Behan, said.