Microsoft's 20-Year Stock Performance Outperforms Market by 7.3%

Microsoft's stock has outperformed the market over the past 20 years with an annualized return of 15.97%, resulting in a market capitalization of $3.87 trillion. If $100 was invested in Microsoft 20 years ago, it would be worth $1,948.28 today based on a current price of $520.50. Compounded returns can significantly impact cash growth over time, making Microsoft a successful investment choice.

Microsoft Corporation has consistently outperformed the broader market over the past two decades, delivering an annualized return of 15.97%. This remarkable performance has propelled Microsoft's market capitalization to an impressive $3.87 trillion as of July 2025. For investors who purchased $100 worth of Microsoft stock 20 years ago, their investment would now be worth approximately $1,948.28, based on the current stock price of $520.50.

The company's strong financial performance is a testament to its strategic investments and innovative approach to technology. Microsoft's focus on artificial intelligence (AI) and other cutting-edge fields has been a significant driver of its growth. The tech giant's AI divisions, including Microsoft AI and CoreAI, have been at the forefront of this innovation, securing top talent from competitors like Meta Platforms, Inc. [1].

Microsoft's aggressive recruitment strategy, which includes multimillion-dollar compensation packages, reflects the intense competition in the AI sector. This competition is part of a broader trend in the tech industry, with major players like Microsoft, Meta, and Alphabet Inc. investing heavily in AI infrastructure. The combined spending on AI is projected to reach $240 billion by 2025 and 2026, highlighting the industry's commitment to advancing AI technologies [1].

Despite the intense competition and significant investments, both Microsoft and Meta have reported robust financial results. In July 2025, Microsoft reported fourth-quarter revenue of $76.44 billion, marking a 17% increase from the previous year. Meta's second-quarter revenue of $47.52 billion also surpassed analyst expectations [1].

Microsoft's consistent performance over the past 20 years underscores the power of compounded returns. For investors, this data provides a clear illustration of how long-term investment in high-performing stocks can lead to substantial financial growth. As the AI talent war continues to shape the tech industry, Microsoft's strategic investments and strong financial performance position it as a key player in the future of technology.

References:
[1] https://theoutpost.ai/news-story/microsoft-intensifies-ai-talent-war-targets-meta-s-top-engineers-with-multimillion-dollar-packages-19020/
[2] https://www.benzinga.com/insights/news/25/08/47107038/100-invested-in-microsoft-20-years-ago-would-be-worth-this-much-today