Microsoft (MSFT) Stock Soars 0.37% to Record High on AI Optimism

Microsoft's (MSFT) stock price surged to a record high today, with an intraday gain of 0.37%.

The strategy of buying MSFT shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -1.0%, significantly underperforming the market. This indicates that waiting for dips to buy in, even after recent highs, can lead to underwhelming results. It's important for investors to consider this scenario when making their investment decisions.

Microsoft's stock has reached an all-time high, driven by optimism around its position in the AI market. Analysts have upgraded price targets, with Wedbush's Daniel Ives increasing the target to $600, indicating significant upside potential.

The company's strong AI business, particularly the adoption of Copilot and Azure monetization, is seen as a key driver of its stock performance. Analysts highlight Microsoft's early lead and strong position in the AI sector as contributing factors.

Despite positive momentum, there are key support levels to watch for potential pullbacks, around $468 and $425, which could provide buying opportunities.