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Microsoft Corp. (Nasdaq: MSFT) shares climbed 0.58% to $470.38 at the close on Friday, marking a second consecutive all-time high.

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Microsoft Corporation (MSFT)

The software giant continues to ride the wave of AI-driven optimism and cloud computing strength. Analysts remain bullish on the stock, with the average price target now around $525, suggesting a 12% upside from current levels.

Bernstein and Goldman Sachs are among the latest firms to increase their expectations. Bernstein lifted its target to $540, citing long-term gains from Microsoft’s partnership with OpenAI. Goldman Sachs boosted its projection to $550, forecasting cloud revenue could more than double by 2029.

Cloud and AI Drive Growth

Microsoft’s Intelligent Cloud segment has become a key growth engine, delivering 21% year-over-year revenue growth last quarter. Azure’s continued momentum reflects growing enterprise demand for AI-enabled services. The company expects similar growth for the current quarter, which runs through June. Microsoft’s next earnings report is due between July 28 and August 1.

At Microsoft Build last month, executives laid out the firm’s expanding AI product roadmap, reinforcing its position as a dominant force in enterprise tech. Wedbush analysts believe Microsoft is currently “in the driver’s seat on the AI front,” with its infrastructure poised to capitalize on ongoing digital transformation.

Valuation and Performance Metrics

Microsoft boasts a market capitalization of $3.5 trillion, again overtaking Nvidia in the race for the world’s most valuable company. Financially, the company remains in solid shape: a forward P/E of 31.35, profit margins above 35%, and $79.6 billion in cash on hand. Levered free cash flow stands at $54.8 billion.

MICROSOFT $MSFT HITS NEW ALL-TIME HIGH, NOW LARGEST COMPANY, TOPS $3.5T MARKET CAP FOR FIRST TIME pic.twitter.com/KCL22xmFSm

— Wall St Engine (@wallstengine) June 6, 2025

Long-term performance remains stellar. Over the past five years, Microsoft shares have returned 162%, far outpacing the S&P 500’s 87%. Year to date, the stock is up 12.03%, compared to a 2.02% rise for the broader index.

Windows 11 Push Raises Eyebrows

While the tech giant enjoys investor enthusiasm, its recent push to transition users from Windows 10 to Windows 11 has raised concerns. Microsoft has begun framing the upgrade as a security necessity, warning users to “stay on the right side of risk.” Critics say the campaign borders on fear tactics, especially with Windows 10 support ending October 14.

Despite the backlash, Microsoft’s strategy aims to accelerate the adoption of its latest software ecosystem, including Pro PCs with Intel vPro chips.

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