Stock Market Today, May 29: Microsoft Rises as $37 Billion AI Run Rate Highlights Cloud Growth

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NASDAQ: MSFT

Microsoft

Today's Change

(5.25%) $22.40

Current Price

$449.39

Key Data Points

Market Cap

$3.2T

Day's Range

$432.36 - $449.80

52wk Range

$356.28 - $555.45

Volume

3M

Avg Vol

33.6M

Gross Margin

68.31%

Dividend Yield

0.83%

Microsoft (MSFT +5.25%), a global software and cloud solutions provider, closed Friday at $450.24, up 5.45%. The stock moved higher on reports of stronger AI-driven revenue, in-house model development to cut costs, and Xbox and software strength. Investors are watching how its evolving usage-based pricing and hybrid AI-cloud model sustain growth.

The company’s trading volume reached 77.2 million shares, which is about 124% above compared with its three-month average of 34.5 million shares. Microsoft went public in 1986 and has grown 463000% since its IPO.

How the markets moved today

The S&P 500 (^GSPC +0.22%) added 0.23% to finish at 7,580.06, while the Nasdaq Composite (^IXIC +0.20%) gained 0.22% to close at 26,972.62. Within software - infrastructure names, industry peers Apple (AAPL 0.20%) closed at $312.06 (-0.14%) and Alphabet (GOOGL 2.54%) ended at $376.43 (-2.51%), trailing Microsoft’s strong session.

What this means for investors

Microsoft shares rose after the company said its AI business surpassed a $37 billion annual revenue run rate, giving investors a clearer measure of how AI demand is translating into cloud and software revenue. The figure reinforces Microsoft’s advantage in tying AI tools to Azure, Microsoft 365, and developer workflows rather than treating AI as a separate product cycle.

Reports that Microsoft is preparing more in-house AI models add a cost-control angle to that growth. The company is not stepping away from OpenAI, but internal models could give Microsoft more flexibility over which AI workloads it runs, how those features are priced, and the margin pressure that comes with higher usage. Future earnings and product updates will show if more Azure use, Microsoft 365 Copilot adoption, and usage-based AI pricing are helping AI revenue grow while keeping the cloud business profitable.

MSFT0.06%
US500200.04%
AAPL-0.32%
GOOGL-2.48%
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