US stocks: Microsoft adds $485 billion to investors' wealth as shares rise 16%. Check why

If gains hold, the software giant would add more than $485 billion to its market value, surpassing chip giant Nvidia's previous record of $441 billion on April 9, 2025, according to LSEG data.

"Microsoft reported a very strong quarter and it struck the tone markets are looking to hear as the key drivers of growth came from the cloud and AI divisions," said Brian Mulberry, chief market strategist at Zacks Investment Management.

The company has lagged some of its "Magnificent Seven" peers this year; its stock was down more than 18%, up to Wednesday's close.

At least nine brokerages raised the target price on the stock, with the mean target now $560.90.

The results offered fresh evidence that Microsoft's massive AI investments are beginning to pay off, helping ease investor concerns that heavy spending on data centers and computing infrastructure could outpace demand.

"The key question was whether it could shift the conversation from how much it is spending on AI to what it is earning from those investments, and the results suggested meaningful progress," Direxion's head of capital markets, Jake Behan, said.

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