Microsoft Soars 8.43% on AI, Cloud Growth

On May 1, 2025, Microsoft's stock surged by 8.43% in pre-market trading, driven by strong financial performance and strategic investments in artificial intelligence and cloud infrastructure.

Microsoft's third-quarter earnings for 2025 exceeded analyst expectations, with revenue reaching $70.06 billion, a 13.2% increase, and earnings per share of $3.46, up 19% year-over-year. The company's cloud division, Azure, led the growth with a 33% increase in revenue, highlighting the strong demand for cloud and AI services.

Microsoft's strategic investments in AI and cloud infrastructure are expected to yield significant returns in the coming years. The company's capital expenditures are anticipated to slow down after the 2025 fiscal year, which should lead to an acceleration in free cash flow. This long-term investment strategy positions Microsoft as a leader in the AI and cloud computing sectors, with a strong foundation for future growth.

Despite the strong performance, Microsoft's stock is not considered cheap. However, the company's consistent growth and strategic investments make it an attractive option for long-term investors seeking stability and quality. The market's reaction to Microsoft's earnings report underscores the company's resilience and its ability to deliver value to shareholders.