Microsoft sets record with nearly US$450 billion single-day market value gain on cloud strength

Microsoft added nearly US$450 billion in market value on Thursday (Jul 30), the largest one-day gain on record for any 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 per cent, lifting its market capitalisation to US$3.35 trillion, surpassing chip giant Nvidia’s previous record one-day gain of US$441 billion set on April 9, 2025, according to LSEG data.

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 centres and computing infrastructure could outpace demand. “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.

Microsoft has lagged some of its “Magnificent Seven” peers this year, with its stock down more than 18 per cent up to Wednesday’s close. Thursday’s surge reversed much of that decline, as at least nine brokerages raised their target prices on the stock, with the mean target now at US$560.90. The company said its spending plans remain unchanged, expecting capital expenditures of US$50 billion for the fiscal first quarter of 2027 and US$175 billion for the 2026 calendar year.

In its first quarter, Microsoft expects Azure to grow 45 per cent on a constant-currency basis, well above analysts’ estimate of a 40.92 per cent 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,” said Jake Behan, head of capital markets at Direxion.

The record-setting rally underscores a broader shift in investor sentiment toward AI monetisation, as mega-cap technology firms face mounting scrutiny over the scale of their data centre and infrastructure outlays. Microsoft’s ability to demonstrate accelerating cloud growth alongside sustained capital discipline could set a benchmark for peers navigating similar pressures.