Microsoft stock recovers swiftly from Braga chip delay amid renewed premarket buying
Microsoft stock posts 33% Q2 gain despite AI chip delay
Microsoft stock price has delivered an impressive performance through June and the entire second quarter of 2025, showcasing strong investor confidence despite recent challenges.
Over the past week, Microsoft gained 3.6%, extending its monthly rise to over 8.5%. This surge has contributed to a substantial 33% increase for the second quarter and a robust 17% gain year to date, highlighting Microsoft’s continued leadership in the tech sector.
Highlights
-Microsoft stock rebounds from AI chip delay setback above strong technical support
-Microsoft stock quarterly gain stands at 33% with June alone adding 8.5%
-Focus shifts to $500 level today amid strong momentum and robust fundamentals
The stock's upward momentum has been supported mainly by strong earnings results, robust demand for its Azure cloud services, and its dominant position in the artificial intelligence space. Investors have responded positively to Microsoft's consistent growth narrative, especially as AI integration becomes a core theme across its product offerings.
Microsoft stock price dynamics (Oct 2024 - June 2025)
Last Friday, Microsoft stock nearly touched the psychological milestone of $500 per share before experiencing a minor pullback. This retreat was triggered by news that its next-generation AI chip, Braga (also known as Maia 200), will face at least a six-month delay, pushing mass production into 2026. While this news temporarily dampened enthusiasm, technical support at the 20 EMA on the one-hour chart provided a cushion, preserving the broader bullish trend. This technical reaction suggests that investors viewed the production delay as a short-term obstacle rather than a structural setback to Microsoft's growth outlook.
Microsoft stock showcase investor focus on AI growth despite production delays
On Monday, June 30, the last trading day of the month, Microsoft stock has resumed its upward move. The stock advanced from Friday’s close at $495.6 to reach a premarket high of $498.8, marking a 0.6% gain. This renewed buying interest reflects continued optimism around Microsoft's long-term prospects, despite temporary supply chain setbacks for its AI hardware.
The fact that Microsoft quickly regained upward momentum after the chip delay news points to strong underlying demand and confidence in its strategic positioning. Traders and long-term investors alike appear focused on the company’s broader narrative, which is anchored in cloud dominance, AI leadership, and steady financial strength.
As Microsoft edges closer to the $500 milestone, market participants will closely monitor whether this level becomes a springboard for further gains or a short-term resistance zone. The impressive quarterly and monthly returns suggest that buyers continue to control the narrative. For now, Microsoft’s technical resilience and solid fundamentals are expected to keep the stock well-supported, encouraging further accumulation as the new quarter begins.
Microsoft stock surged this week after Morgan Stanley raised its target to $530. Price broke above $498.2 and approached $500 despite overbought RSI conditions.
