Microsoft rebounds after multi-day selloff on bullish analyst commentary and AI infrastructure momentum
Wedbush analyst Dan Ives predicted 'very strong' Q4 earnings for Microsoft and other Big Tech names, calling the current AI landscape a 'mid-1996 moment' of genuine adoption rather than speculation, per Benzinga. BlackRock and Microsoft's AI infrastructure fund has now raised $12.5 billion toward its $30 billion target, while Futurum Group's Daniel Newman praised Microsoft's data center energy cost commitments as positioning the company to reclaim its $4 trillion valuation.
Analysis
This gain breaks a four-day losing streak that saw MSFT decline roughly 6% on concerns about data center cost commitments. The rebound appears to reflect a sentiment shift as analysts reframe those same infrastructure investments as competitive advantages rather than margin headwinds. MSFT outperformed the flat tech sector by a full percentage point, suggesting stock-specific buying interest rather than a broad tech rally.