Microsoft added nearly $450 billion to its market value on Thursday, setting a new record for the largest single-day increase by any company after projecting stronger-than-expected growth in its cloud business and signaling sustained cash generation in the new fiscal year.

The software giant’s shares surged more than 15 per cent at the close of trading, pushing its market capitalization to about $3.35 trillion.

The gain eclipsed the previous record set by chipmaker Nvidia, whose market value rose by $441 billion in a single day on April 9, 2025, according to LSEG data.

The results provided fresh evidence that Microsoft’s heavy investments in artificial intelligence are starting to generate returns, easing investor concerns that its multibillion-dollar spending on data centres and computing infrastructure could outstrip demand.

Microsoft has trailed some of its fellow “Magnificent Seven” technology companies this year, with its shares having fallen more than 18 per cent through Wednesday’s market close.

Following the earnings report, at least nine brokerages raised their price targets on the stock, bringing the average target price to $560.90.

The company also reaffirmed its spending plans, saying it expects capital expenditures of about $50 billion in the first quarter of fiscal 2027 and approximately $175 billion for the 2026 calendar year.