Microsoft (MSFT) shares rose in mid-day trading on Thursday, extending gains after the company’s strong fiscal third-quarter results and a series of analyst upgrades. The stock climbed about 2.04% to $422.35, helped by improving sentiment toward software stocks and a renewed focus on artificial intelligence.
The rally came as Xbox CEO Asha Sharma confirmed the end of development for the Copilot AI assistant on consoles and its wind-down on mobile. Investors took the move as a positive sign that the gaming division is cutting costs and reallocating resources. Sharma stressed the need to “move faster, deepen our connection with the community, and address friction for both players and developers,” signaling a strategic reset for Xbox amid weak hardware sales.
Microsoft’s Q3 earnings, released on April 29, provided the fundamental backdrop. The company posted revenue of $82.9 billion, an 18% increase year-over-year, and diluted earnings per share of $4.27, beating the consensus estimate of $4.06 by over 5%. Operating income rose 20%, and the board declared a quarterly dividend of $0.91 per share, payable June 11. Despite the beat, MSFT shares remain down about 14.64% year-to-date as investors weigh heavy AI infrastructure spending against near-term returns.
Analysts remain broadly bullish. Tigress Financial Partners raised its 12-month price target to $680 from $595, maintaining a Buy rating and citing strong demand for Microsoft’s cloud platform and AI tools. Barclays reiterated its Overweight rating, highlighting efficiency gains driving Azure growth and increasing Copilot adoption that could shift toward usage-based pricing. The Wall Street consensus sits at Moderate Buy with an average price target of $562.44.
Institutional buying continues, with KBC Group NV boosting its position by 2.9% in Q4 to 5.63 million shares, worth about $2.72 billion. Norges Bank, Nuveen, UBS, and Northern Trust also added to their holdings, collectively owning 71.13% of MSFT.
While the news is centered on traditional equities, Microsoft’s performance and AI strategy can indirectly influence crypto markets by shaping risk appetite across tech and growth assets. Strong earnings and bullish analyst calls may bolster overall market confidence, potentially benefiting digital assets in tandem with equities.
