By Cris Tolomia
Publication Date: 2026-10-01 11:43:00
Microsoft stock surged 37.5% across the third quarter, a performance unmatched since 1998 that lifted the company’s market capitalization by $1 trillion, according to Bloomberg. The stock was the fifth-best performer in the Nasdaq 100 Index over that period; the index itself gained just 0.4% over the same three months.
Much of the gain followed Microsoft’s earnings report in late July, which showed cloud growth at its fastest pace in four years, driven by demand for AI products. That single-day move of 16% was the stock’s strongest showing in nearly two decades, dating back to October 2008, and brought $450 billion in new market value.
The quarterly rally marked a sharp reversal from June, when the stock logged its weakest monthly showing in roughly 25 years amid widespread skepticism about the company’s AI outlays and what a world dominated by AI might mean for software vendors.
“After a period where it struggled with the message, Microsoft…
