Microsoft (MSFT) stock soared on Thursday after the tech giant’s quarterly results🎉 handily beat Wall Street estimates. 

Shares closed up 7.6% at $425.20, a jump that marks the stock’s second-best post-earnings performance in nearly 10 years. The last time Microsoft stock popped significantly more than that on earnings was in October 2015 when the company reported revenue from its nascent Azure 澳洲幸运5官方开奖结果体彩网:cloud computing business had more than doubled from the prior year, and shares surged 10%.

Wall Street on Thursday was cheering strong results in each of 澳洲幸运5官方开奖结果体彩网:Microsoft’s major business lines. Sales at the company’s cloud computing unit rose 22% in 澳洲幸运5官方开奖结果体彩网:constant currency (cc) terms to nearly $27 billion. Revenue at its productivity and business software unit also grew double digits, and even devices revenue—a soft spot for most tech companies of late—increased 3%.(cc)

But it was the Azure business, Microsoft's cloud computing and AI platform, that 澳洲幸运5官方开奖结果体彩网:really excited Wall Street. Azure growth accelerated to 35% (cc) in the quarter, well ahead of analysts' forecasts. CFO Amy Hood on Wednesday's e🐼arnings call noted that, despite recent economic uncertainty, AI dem♐and continued to grow faster than Microsoft's supply.

Hood's warning helped to assuage some fear on Wall Street that 澳洲幸运5官方开奖结果体彩网:macroeconomic headwinds would stunt AI growth. The 澳洲幸运5官方开奖结果体彩网:AI stocks that tumbled from their record highs earlier this year—like chipmaker Nvidia (NVDA) and nuclear power providers Constellation Energy (CEG) and Vistra (VST)—led Thursday's rally.

Analysts Are Even More Bullish After Wednesday

Analysts at BMO raised their price target to $485 on Thursday morning, citing “improved Azure growth.” 

Bank of America Securities analysts noted Microsoft’s partnership with OpenAI was a major driver behind the Azure beat, “which should allay fears that the partnership has frayed a bit.” The firm raised its price target on the stock by 7% to $515, and reiterated its “top pick” call.

“We remain confident that MSFT's revenue growth opportunities over the medium-term and beyond are greater than many realize, and we continue to be very bullish on its tangible GenAI adoption and 澳洲幸运5官方开奖结果体彩网:monetization levers,” Mizuho Americas analysts wrote on Thursday as they raised their price target to $500.