Microsoft stock has doubled since 2023 due to increased demand for Azure and AI investments.

From Nasdaq: 2025-06-23 00:06:00

Microsoft stock (NASDAQ:MSFT) has seen a 15% year-to-date gain, outperforming the S&P 500 index due to increased demand for Azure driven by AI investments. Factors like a 48% increase in its P/S ratio, a 36% revenue increase, and share buybacks have contributed to the stock’s doubling since 2023.

The revenue growth of Microsoft has been significant, with a 32% increase from $198 billion to $270 billion driven by cloud services, AI integration, and gaming expansion. The company’s valuation has also increased, with a 48% rise in the P/S ratio from 9x to 13.3x, supported by AI leadership and strong cloud presence.

Despite trading near $480, Microsoft’s valuation is expected to grow further with strategic AI initiatives benefiting Azure and Microsoft 365. Risks include past stock drops during economic downturns and aggressive capital spending. A risk-adjusted framework in the Trefis High Quality Portfolio offers a smoother investment ride with strong returns and lower risk.



Read more at Nasdaq: What’s Behind The 2x Rise In Microsoft Stock?