Microsoft stock hits new 2025 high amid earnings strength and trade tension relief
This price move also sets a new peak for the year
Microsoft Corp shares price began the week on a strong note, reaching a five-month high during premarket trading on Monday, May 12.
The stock climbed near $449, clearing its January high and recovering the entire drawdown experienced during the first quarter of 2025. This price move also sets a new peak for the year and places Microsoft just 6.7% below its all-time high of $468.50.
The surge follows a series of supportive developments. Microsoft had already reported strong quarterly results on May 1, which triggered about 10% surge in price movement. Although price briefly retreated into the $430–$439.60 consolidation range after the price surge. The week still closed with a nearly 5% gain. The stock's resilience and reattempts to break the resistance last week signalled building pressure, which finally resolved in today’s upside breakout.
Microsoft stock price dynamics (Jan - May 2025)
The renewed buying interest is also being supported by broader macro conditions. Monday’s rally across the tech-heavy "Magnificent Seven" stocks including Microsoft was sparked by the announcement of a 90-day tariff reduction agreement between the U.S. and China. This move has revived investor appetite for U.S. equities, especially large-cap growth names, by reducing trade uncertainty and pushing risk appetite higher.
Microsoft RSI holds in bullish zone as price momentum builds near record high
Technically, Microsoft’s 4HR RSI is still in bullish territory but continues to support the ongoing rally, suggesting there’s still room for further upside before the market becomes overstretched. The previous consolidation acted as a healthy reset after the May 1st breakout, and today’s move reinforces the uptrend structure.
Investors are now looking toward the all-time high at $468.50 as the next major upside target. If the current bullish momentum holds, supported by both strong earnings and improving macro sentiment, Microsoft may test this level in the coming weeks. Unless new policy risks or profit-taking disrupt the trend, Microsoft's recent move reflects a shift in investor confidence that could extend well beyond this week’s price action.
Microsoft stock failed to hold its breakout above $438.5 and reversed after forming a bearish doji. Renewed selling pressure followed as price stalled near its 2025 high around $440.
