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Microsoft remains well valued after 27% rally and strong AI-driven growth in cloud services.

Analyst Insights
15 Sep 2026
Seeking Alpha
View Source
Bullish
Microsoft remains well valued after 27% rally and strong AI-driven growth in cloud services.

Microsoft's stock has risen 27% in six months, outperforming the S&P 500, supported by strong earnings and accelerating Azure cloud growth at 43%. The company’s new revenue model, including rapid adoption of M365 Copilot, boosts recurring revenue and strategic positioning in AI and cloud markets. With a forward P/E of 25.4x and projected 18% EPS growth, Microsoft offers attractive risk-adjusted upside compared to its historical valuation. Investor confidence has improved as fears around AI have diminished, highlighting robust demand exceeding supply in cloud and AI services.

Microsoft's shares trade at USD 498.83 as of Sep 15, 2026 15:02 WIB, down 1.30% on the day but still close to their 52-week high of USD 542.07. This price contrasts with the 52-week low of USD 352.83, showing strong recovery and resilience. The stock's current dividend yield stands at 0.73%, reflecting steady income potential alongside its growth narrative in AI and cloud sectors.

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