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Microsoft Draws Alphabet-Style Rebound Talk as Azure Growth Accelerates

Investors cite Azure’s surge alongside Microsoft’s OpenAI stake as the likely catalysts.

Overview

  • Microsoft’s recent share slump has left the stock trading at valuations likened to Alphabet’s 2025 low, prompting fresh comparisons between the two paths.
  • In the latest quarter, Azure revenue rose 39% year over year, marking one of Microsoft’s strongest growth stretches in a decade.
  • Microsoft is leaning into a platform approach to AI by offering many models on Azure rather than pushing a single in‑house model.
  • The company reportedly owns about 27% of OpenAI, which investors view as a potential source of added value if OpenAI pursues a listing.
  • Alphabet’s late‑2025 rebound followed a court ruling that avoided major business changes and the rise of its Gemini model, a backdrop now used to frame Microsoft’s potential rerating.