How is Microsoft's Azure performing?

Azure is experiencing robust growth, up 40% year-over-year, contributing significantly to Microsoft's revenue.

What is the analyst consensus for Microsoft stock?

The vast majority of analysts rate Microsoft stock as a buy, with a consensus price target of $625.41.

How does Microsoft's valuation compare to the S&P 500?

Microsoft commands a premium valuation, trading at approximately 41x forward earnings at $650, nearly double the S&P 500's multiple.

Home / Business and Economy / Microsoft Stock Surges Past $479 Amidst AI Boom

Microsoft Stock Surges Past $479 Amidst AI Boom

14 Dec, 2025

•

Summary

Microsoft revenue exceeded estimates by $2.3B, with Azure growing 40%.
Analysts overwhelmingly rate Microsoft stock a buy with a $625.41 target.
Reaching $650 requires a 35.7% gain, valuing shares at 41x forward earnings.

Microsoft Stock Surges Past $479 Amidst AI Boom

Microsoft has demonstrated strong performance in 2025, with its stock trading near recent highs. The company's latest quarterly report showed revenue of $77.67 billion, surpassing analyst expectations by nearly $2.3 billion and achieving 18.4% year-over-year growth. A significant contributor to this success is Azure, which experienced 40% growth as businesses increasingly adopt digital transformation strategies.

Led by CEO Satya Nadella, Microsoft is solidifying its position at the forefront of the AI revolution through its Copilot AI assistants integrated across its productivity tools. This strategic focus, combined with strong cloud growth and emerging AI monetization, has fueled investor confidence. Wall Street analysts are overwhelmingly optimistic, with 56 out of 57 rating the stock a buy and setting a consensus 12-month price target of $625.41.