Microsoft re-joins the $4 trillion market caps race, shortly after NVIDIA surpassed that mark. The Windows maker, which is now better known as Azure cloud service seller and an ardent AI promoter has without a doubt delivered phenomenal quarterly metrics. That's why the stock jumped as much as 8.5% already in the very first post-earnings hour of the extended trading yesterday, on July 30, peaking well above $550 per share for the very first time in its history. Its total cloud division's revenue added 27% to reach $46.7 billion, compared to the 20-22% growth rate only 3 months before, including specifically Azure growth pace of as much as 39% YoY vs the 33% to 35% range seen recently. This was fuelled by “demand across every industry and sector” as companies increasingly adopt AI-driven tools, according to CEO Satya Nadella. Cloudy leadership is a natural testament to Microsoft's lucky AI integration into its multi-year strategy, while normal server products sales gradually declined by 2% to 3% in sync with ongoing shifts from its previously on-premises oriented solutions. Indeed, the past is dust while the best way of predicting your future is to create it.

When Microsoft's capex is at $24.2 billion (+27% YoY) due to its continued investment into AI capabilities, its living business generated $42.6 billion in cash flow from operations (+15%) as a good example why Microsoft just hit its own absolute records in terms of both revenue ($76.4 billion, which is $2.6 billion above consensus estimates, or $6.3 billion better than in the previous quarter to provide +17% YoY) and equity per share ($3.65 vs $3.37 in analyst pool projections, $3.46 in the previous quarter and $2.95 in the same period of 2024 to provide 23.7% YoY). Any rally above $600 per share looks like a modest goal on such solid financial grounds. This would likely form the next starting point for something bigger. No one can stop Microsoft. Let's remember this day clearly as the day of probably never seeing MSFT price below $500 anymore after it.