Microsoft Shares Surge to Fifth in U.S. Trading Volume Amid Earnings Optimism and AI Momentum

Microsoft (MSFT) closed August 4 with a 2.20% gain, trading at $536.87 as its volume of $13.56 billion ranked it fifth among U.S. stocks. The rally follows upward revisions to earnings estimates and strong revenue growth forecasts. Analysts highlight the Zacks Rank #2 (Buy) rating, driven by a 1.5% monthly increase in current-year earnings projections and a 1.3% rise in next-year estimates. Revenue expectations for FY2025 and FY2026 are set at $317.82 billion and $362.13 billion, respectively, reflecting 12.8% and 13.9% annual growth.

Positive momentum is supported by Microsoft’s consistent outperformance in cloud and AI segments. Recent Q4 results showed a 18.1% year-over-year revenue jump to $76.44 billion, with earnings per share (EPS) exceeding estimates by 8.96%. Analysts note the company’s $30 billion AI infrastructure investment as a catalyst for long-term growth, though its premium valuation (Zacks Value Style Score F) suggests limited downside despite elevated price multiples.

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