Microsoft Record Leads $1.5 Trillion Nasdaq Surge

Wall Street’s so-called Magnificent Seven has been living up to its name again, but none more so than Microsoft Corp.

The software giant has led a broad rebound in the biggest technology and internet stocks and closed at a record high on Wednesday. The rally in Big Tech has helped add about $1.5 trillion in market value to the Nasdaq 100 in recent days, suggesting a period of skepticism surrounding the pricey market leaders may be ending.

“When it comes to what you want to see, Microsoft checks the most boxes, and checks them the most emphatically,” said Jonathan Cofsky, portfolio manager at Janus Henderson Investors. “It has a resilient business model, it is executing extremely well, it is a clear winner in AI, and overall it has the most secular tailwinds and fewer secular risks than other companies.”

Microsoft's Lengthy Rally Leads to Record

Microsoft dipped 0.3% on Thursday, coming off a nine-day rally, its longest winning streak in about four years. The shares have gained around 15% since the end of September, making them the top performer among the seven megacaps that have powered the market’s gain this year. The advance has resulted in a market capitalization of $2.69 trillion, not far from Apple Inc., which at $2.85 trillion is the biggest public company.

The stock advance follows Microsoft’s results, which showed a rebound in cloud growth amid demand for artificial intelligence products, making it a highlight of an otherwise mixed season for megacap earnings.