Microsoft stock stays above $525 as AI optimism offsets recent pullback
Microsoft Corp. (NASDAQ: MSFT) closed last session at $527.75, easing 0.72 percent on the day as the stock continues to consolidate after reaching a high of $560 last week. The modest retreat coincides with the company’s confirmation of another round of layoffs, i.e., 40 jobs cut in Washington, adding to the more than 15,000 roles eliminated in 2025.
Highlights
- Microsoft stock price trades at $527.75, holding above 20 EMA support amid $560 pullback
- RSI eases to 59.26, signaling consolidation, while volume remains light on downside
- Analysts maintain Strong Buy rating with $624.11 average price target and nearly 17.5% upside
While the latest move is small in scale, it reflects investor caution amid a growing disconnect between cost-cutting measures and Microsoft's record-breaking AI-driven growth narrative. The recent decline has brought MSFT price back to test the lower band of its ascending channel that has supported price since early May. The 20 EMA on the 4-hour chart at $521.59 and the broader channel base remain key support levels. A failure to hold this region could open the way toward the 50 EMA near $509.51 or even the psychological $500 mark. However, RSI readings near 59 suggest the pullback is corrective rather than trend-ending. Volume has remained subdued during the decline, further indicating a healthy pause in the uptrend.
MSFT price dynamics (Source: TradingView)
For August 6th (Wednesday), a renewed breakout above $540 would likely shift momentum back toward the $560 to $580 resistance corridor. Until then, traders are watching for price stability above the $520 zone to validate ongoing strength in the broader bullish pattern.
Fundamentals support long-term thesis
Despite workforce restructuring headlines, Microsoft retains strong institutional backing. Thirty-three of 34 analysts rate the stock a “Strong Buy,” with a consensus price target of $624.11. The company also continues to generate investor interest through anticipation of its next-gen Xbox console, rumored to include a Magnus APU chip that could blur the line between console and PC gaming.
In earlier coverage, we emphasized that Microsoft’s breakout above $500 set the stage for continued strength, with $540 to $560 as interim targets. That framework remains valid as long as support at $520 to $509 holds. A deeper breakdown below $500 would be needed to challenge the long-term uptrend.
Latest Microsoft News
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