Microsoft stock edges lower premarket as investors shift focus to AI-led earnings boost
Microsoft hits record high of $508.33 amid CPI-driven market rally
Microsoft stock reached a new all-time high on Tuesday at $508.33, driven by broader market optimism following a stronger-than-expected U.S. CPI report.
The inflation data lowered expectations for a near-term rate cut by the Federal Reserve, which helped lift both Treasury yields and equity prices across sectors.
Highlights
-Microsoft hit $508.33 on strong CPI data and AI-driven market optimism
-Microsoft trades at $505.15 premarket today as focus shifts to earnings
-RSI below 70 and $504.50 support hint at possible renewed buying
Microsoft opened the previous day at $503 and gained 1% intraday before cooling off to settle at $505.80. Despite retreating from the peak, the stock still closed with a 0.55% daily gain. Volume was elevated compared to the prior day, though still lower than the five-day average, pointing to moderate conviction behind the upward move.
Microsoft stock price dynamics (May - July 2025)
On Wednesday, July 16, the stock is trading slightly lower in the premarket session at $505.15, reflecting a continued retracement from the all-time high. The focus now shifts to the company’s upcoming earnings report scheduled for July 29. Analysts appear to be raising their bullish price targets in advance, encouraged by Microsoft’s expanding revenue streams, particularly in artificial intelligence and cloud computing.
Microsoft rally pauses today, but Azure and AI growth keep bulls engaged
Growth in Microsoft’s Azure platform has been central to this optimism. The company’s pivot toward AI-led solutions and recent layoffs, interpreted as a strategic reallocation of resources, is not just shaping investor sentiment but also influencing internal restructuring.
From a technical perspective, Microsoft shows signs of sustained strength. The 4-hour RSI has consistently stayed below the 70 overbought mark since the beginning of July, even as the stock has trended higher and hit new record levels. This reflects healthy momentum, as the price uptrend has not triggered reversal signals from overbought conditions.
On the 1-hour chart, current price action is hovering near the $504.50 support level, which is reinforced by the 20-period exponential moving average. This zone may serve as a base for buyers to attempt another move higher later in the day. Whether Microsoft’s stock price can push higher in the sessions ahead may depend on fresh institutional interest ahead of earnings and further signs of demand for its AI and cloud segments.
Microsoft stock price broke above $500 to a record high at $506.8 before easing on overbought signals. AI cost savings and strong Azure revenue supported Microsoft’s growth.
