Microsoft (MSFT) shares climbed on Tuesday, putting the stock on track for a record closing high as the technology company expanded its artificial intelligence infrastructure and regained a market capitalisation above $4 trillion.
The stock rose 1.84% to $551.15 during Tuesday’s session. The stock was trading at $548 at the time of writing.
If the gains hold, Microsoft would record its first closing high since October 28, 2025, when shares ended at $542.07.
Microsoft closed Monday up approximately 1.2% at $541.15, taking its market value to $4 trillion.
It was the first time the company had crossed the $4 trillion threshold since October 2025.
Investor interest has been supported by expectations that Microsoft’s cloud computing platform, Azure, and its Copilot artificial intelligence assistant could help generate additional revenue.
The company’s latest AI chip announcement and increased investment in data centre infrastructure have added to the focus on its long-term growth prospects.
Barclays raises Microsoft stock price target to $600
Barclays raised its Microsoft price target to $600 from $512 on Tuesday, maintaining an Overweight rating as part of its review of software stocks.
The revised target implies approximately 11% upside from Microsoft’s Monday closing price.
Wall Street’s broader outlook remains positive. Microsoft has an average Buy rating and an average price target of $584.48, based on estimates from 59 firms surveyed by FactSet.
Morgan Stanley analyst Adam Wood also maintained an Overweight rating and a $600 price target on Monday.
In a research note, Wood said Microsoft was positioned to maintain its lead in generative AI spending intentions and was well placed to generate revenue from a market in which businesses use multiple AI models.
He added that Microsoft’s strategic opportunity was to monetise enterprise AI workflows across different parts of its technology stack, reducing its dependence on any single AI model becoming dominant.
Microsoft has been expanding Copilot’s capabilities to connect different tools and help businesses build, customise and scale AI across workflows.
The developments could support demand for Azure and its AI software offerings as businesses increase their use of the technology.
Microsoft unveils Maia 300 AI chip for data centres
Microsoft introduced its latest artificial intelligence chip, Maia 300, on Monday as part of its effort to deploy more custom-designed hardware across its data centres.
The Maia 300 system consists of a server rack containing 96 Maia processors.
Microsoft plans to begin deploying the system in its cloud facilities in 2027, alongside its predecessor, Maia 200.
The company expects to run multiple gigawatts of AI workloads on Maia hardware starting next year.
Microsoft said Maia 300 could process 40% more tokens per megawatt of power than leading graphics processing unit-based systems. Tokens measure the inputs and outputs involved in AI queries.
The company also highlighted the chip’s memory bandwidth as a competitive advantage.
More efficient hardware could help Microsoft’s Azure cloud platform and Foundry AI software compete with Amazon Web Services and Google for businesses seeking infrastructure to run AI workloads.
The move reflects a broader effort among major technology companies to expand the use of in-house chips and reduce reliance on expensive third-party processors.
AI spending and data centre security remain in focus
Microsoft’s AI expansion requires substantial investment.
Capital spending reached $41 billion in the fiscal fourth quarter and $145 billion for the full fiscal year.
Wall Street expects the company to increase AI-related spending further in fiscal 2027, which began on July 1.
The investments could support future revenue growth, although their returns remain an important consideration for investors as spending increases.
Microsoft also announced a data centre security initiative with Marvell Technology and Oracle.
The companies have formed an Open Compute Project working group to standardise hardware security for data centres.
The group will focus on silicon-based security solutions, hardware security module attestation and cryptographic key management at the server level.
The initiative aims to reduce latency, improve scalability and strengthen security for cloud computing workloads.
Microsoft’s stock performance will remain closely tied to investor expectations for Azure, Copilot and its wider AI business.
With Microsoft back above the $4 trillion mark, the stock is likely to stay a closely watched name on top investment platforms.
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