MSFT maintains a strong short-term structure on August 31 after Friday’s close around $513.5, while the chart shows that the stock has already tested the $517-518 area. This is important because the stock has effectively moved above the previous $505-510 consolidation zone and formed a new local high after pulling back toward $480.
Against this backdrop, the technical picture remains bullish, but the current advance is already moving into an area where the probability of profit-taking is increasing. As long as MSFT holds above $505-508, the market retains the chance to continue toward $520 and then $525-530. A break below $500 would noticeably weaken the momentum and shift attention back toward $490-485.
Infrastructure efficiency strengthens AI case
The fundamental base also remains very strong. In the fourth fiscal quarter, Microsoft increased revenue to $90.0 billion, Microsoft Cloud generated $59.3 billion, Azure and other cloud services grew by 43%, while commercial remaining performance obligation reached $678 billion. Annual Azure revenue exceeded $100 billion for the first time, while Microsoft 365 Copilot reached more than 30 million paid seats.
It is especially important that the company reported adding another 1 GW of computing capacity during the quarter and remains on track to roughly double total infrastructure capacity over two years. At the same time, Microsoft increased throughput for Copilot workloads by 4x since the start of the year, meaning the market is now seeing not only confirmation of demand, but also signs of improving efficiency across existing infrastructure.
Warsh keeps cost-of-capital risk elevated
A new risk factor is that the strong price action is now taking place against a more hawkish reassessment of Fed policy. After Kevin Warsh’s speech at Jackson Hole, the probability of a September rate hike rose to around 58-60%, while the yield on 2-year Treasuries jumped toward 4.35%.
Today, it has eased slightly to around 4.325%, while the 10-year yield is holding near 4.71%, but the overall environment for Big Tech remains less comfortable. For MSFT, this is especially important after the rapid rise of recent weeks: a higher discount rate could limit further P/E expansion even with strong operating performance. At the same time, the stock is still showing relative strength, meaning the market is clearly prioritizing Azure, Copilot, and AI infrastructure growth over macro pressure.
$517-520 becomes next momentum test
The most relevant question now is not whether Microsoft can continue to grow, but whether the current pace of AI monetization can be sustained with a higher cost of capital. If MSFT holds above $517-520, as noted in Microsoft extends breakout as AI demand supports renewed momentum, the market could move into a new phase of momentum. If the $517-520 zone triggers selling again, the most likely scenario would be consolidation, with initial support around $508-505.
Latest Microsoft News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
