Microsoft stock nears all-time high as cloud revenue growth fuels bullish trend
Microsoft’s gains translated into a massive $322.8 billion increase in market cap over the week
Microsoft Corp shares kicked off May on solid footing after closing last week with the largest weekly gain of 2025, an 11% rise driven by its standout fiscal Q3 earnings.
The rally propelled Microsoft to an all-time market cap of $3.24 trillion, surpassing Apple and solidifying its position as the most valuable publicly listed company in the United States.
The biggest driver of investor enthusiasm was the accelerating growth in Azure, Microsoft’s cloud-computing segment. Azure revenue expanded 33% year-on-year, up from 31% in the previous quarter. The improvement not only demonstrated strong enterprise demand but also reinforced Microsoft’s edge in a competitive cloud market. This performance fed directly into the surge in share price, which last week topped an intraday high near $440.00. Microsoft’s gains translated into a massive $322.8 billion increase in market cap over the week.
Microsoft stock RSI enters overbought zone after post-Q3 earnings-induced rally
As of Monday, May 5, premarket trading placed the stock at $432.75 just 3.5% below its 2025 peak of $448.30. This price action signals sustained momentum but also flags the potential for consolidation. Technical indicators are starting to reflect that the rally may need a breather because both the 4-hour and daily RSI are in overbought territory, suggesting a brief pullback could be on the horizon.
Microsoft price dynamics (July 2024 - May 2025). Source: TradingView
From a trend perspective, Microsoft’s short-term technical outlook remains bullish. The 20- and 50-day EMAs have converged, setting up for a golden cross formation. This crossover, if completed, would reinforce the underlying uptrend and invite further buying on retracements. Should profit-taking emerge in the near term, the $418.30 level serves as a key support zone. This price previously acted as a launchpad during the Q3 earnings breakout and now represents the first level where bulls may regroup.
Overall, Microsoft's stock strength is underpinned by strong cloud growth, market leadership, and a supportive technical setup. While short-term indicators suggest the possibility of a minor retracement, the broader outlook continues to favour higher prices in the weeks ahead.
Microsoft stock surged 10.6% to a four-month high after strong earnings ended a losing streak.MSFT stock price pulled back to $425.0 as momentum faded despite raised analyst targets.
