Microsoft Corp. shares have demonstrated a noticeable short-term recovery after a period of lagging the broader market, driven by massive capital expenditures on artificial intelligence infrastructure and constrained Azure growth.

During trading, shares of the tech giant rose after investment firm Stifel upgraded the company’s rating from “Hold” to “Buy,” expressing confidence that the company’s business is gaining momentum again.

Stifel analyst Brad Reback raised his price target for MSFT stock from $530 to $575. Microsoft’s market capitalization currently stands at approximately $3.72 trillion, with shares surging 35.1% over the past three months, significantly outperforming the S&P 500’s gain over the same period (4.5%).

Microsoft wrapped up fiscal 2026 on a strong note: fourth-quarter revenue increased 18% year-over-year to reach $90 billion, while Microsoft Cloud revenue rose 27% to $59.3 billion.