Microsoft rebounds toward $505 as infrastructure efficiency strengthens AI case
MSFT is trading around $505 on September 14 and is up almost 2%, continuing its recovery after the recent test of the $490 zone. This time, the main positive factor is related not so much to another expansion of AI CapEx, but to improving efficiency of the infrastructure already built.
541.29
541.29
AI infrastructure begins delivering better returns
Microsoft said that over the latest quarter it added another 1 GW of capacity and remains on track to double its total infrastructure capacity over two years. At the same time, throughput for Copilot workloads has increased 4x since the beginning of the year, Maia 200 delivers around 30% better performance per dollar compared with the previous generation of hardware, while Cobalt 200 is expected to be operating in more than 25 data centers by the end of the month.
The latest earnings report still provides a strong basis for valuation. In the fourth fiscal quarter, revenue rose 18% to $90 billion, Microsoft Cloud generated $59.3 billion, Azure increased 43%, while commercial RPO reached $678 billion, up 84% y/y. More importantly, Cloud gross margin declined to 65% from 68% a year earlier, so the market will now be watching whether efficiency gains can offset pressure from the infrastructure cycle.
Fed guidance remains main external risk
A separate risk this week is related to the Fed. The market currently estimates the probability of a 25 bp rate hike at around 90%, so the hike itself is already largely priced in. For MSFT, Powell’s tone and the new rate path will matter more. If the Fed signals a more cautious approach after the September move, yields could stabilize and support expensive AI stocks.
If, however, the regulator signals several more hikes, valuation pressure will return. At the same time, today’s reaction in MSFT shows that investors are still willing to look through a potential hike, as strong balance sheets and resilient AI demand allow the largest companies to continue the investment cycle even with expensive capital.
$505 becomes immediate breakout test
Having found support around the $490 level, MSFT is recovering its previous losses and is currently testing resistance around $505. Although the return to this level increases the chances of a breakout, profit-taking on long positions and a test of $500–495 support are again possible at current levels, but increased buying activity, as noted in Microsoft holds key support as macro pressure tests AI growth case, should be expected on declines.
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
