Should I buy Microsoft stock in 2025?

What is Microsoft?

How much is Microsoft stock?

The price of Microsoft stock is rising this week. As of now, the current share price stands at $458.68, reflecting a 24-hour gain of +$1.32 (+0.29%) and a weekly increase of +8.32%. Microsoft boasts a market capitalisation of $3.41 trillion, with an average 3-month trading volume of roughly 24.1 million shares. The stock’s price-to-earnings (P/E) ratio is 35.47, offering a dividend yield of 0.72%, and its beta is 0.99. With steady performance and relatively low volatility, MSFT continues to attract interest from investors seeking stability and growth opportunities in the technology sector.

Our full analysis on Microsoft stock

Over the past three years, Microsoft Corporation (NASDAQ: MSFT) has consistently delivered robust performance across multiple metrics, sustained by strong financial results and sector leadership. Our in-depth review—utilising a blend of quantitative indicators, technical analysis, peer benchmarking, and advanced proprietary algorithms—highlights a stock poised at the intersection of innovation and profitability. With these foundations in place, the salient question arises: could Microsoft stock once again become a strategic entry point into global technology leadership in 2025?

Recent Performance and Market Context

Microsoft shares are currently trading at $458.68 (as of 30 May 2025), reflecting an intraday uptick of 0.29%. Year-to-date performance stands at +8.82%, with a one-year gain of +6.88% and a six-month advance of +8.32%. In the context of recent volatility in technology equities, Microsoft’s progression demonstrates notable resilience and sustained market confidence. The 52-week range of $344.79–$468.35 not only underscores the stock’s impressive appreciation but signals a broad base of long-term support.

In Q1 of FY2025, Microsoft once again exceeded consensus expectations, posting revenues of $65.59 billion (+16% YoY) with earnings per share of $3.30 (vs. $3.10 anticipated, +16% YoY). These results were materially driven by the Intelligent Cloud segment ($26.8bn, +21% YoY) and an exceptional +33% year-on-year surge in Azure and cloud services. Notably, the overall sector backdrop remains favourable: secular tailwinds for enterprise digitisation, artificial intelligence, and cloud computing continue to provide a strong platform for companies with Microsoft’s scale and capabilities.

Furthermore, the macroeconomic climate—characterised by stable inflation in the US, ample liquidity, and strong corporate technology investment—bodes well for market leaders that combine growth potential with balance sheet strength. Microsoft’s $3.41 trillion market capitalisation not only signals its exceptional status but also its ability to weather macro headwinds far better than its peers.

Technical Analysis

• The 14-day Relative Strength Index (RSI) stands at 69.11, hovering in neutral-to-bullish territory, suggesting short-term room for further appreciation before entering overbought conditions.
• The MACD (12,26,9) delivers a solid buy signal at 15.33, reinforcing the positive underlying trend.
• All major moving averages align to the upside: the 20-day ($447.13), 50-day ($407.07), 100-day ($408.44), and 200-day ($415.16) moving averages are below the current price, corroborating sustained bullish pressure.

From a structural perspective, MSFT is trading just above the $453.35 Fibonacci support, with probable technical consolidation before a potential breakout toward resistance at $464.53. The proximity to its all-time high of $468.35 suggests any consolidation phase could represent ideal positioning ahead of renewed upside momentum—especially with a “Strong Buy” technical consensus in place.

Fundamental Analysis

Looking at underlying business fundamentals, Microsoft continues to post double-digit top-line expansion, with Q1 FY2025 revenue up 16% year-on-year. Operating leverage remains robust—EPS growth of 16% (to $3.30) exceeded expectations, reflecting efficient cost management even as R&D investments scale higher.

• Intelligent Cloud leads with $26.8bn in revenue (+21% YoY).
• Azure accelerates at +33%, highlighting rapid cloud adoption and successful AI monetisation.
• Total Microsoft Cloud hit $38.9bn (+22% YoY), underlining a clear multi-cloud growth dynamic.

Despite a premium TTM price/earnings ratio of 35.47, Microsoft’s PEG and price-to-sales ratios are reflective of sector-leading profitability, sustained double-digit growth, and superior cash flows. The company’s modest dividend yield (0.72%) and a steadily rising payout ($0.83 quarterly) augur well for income-seeking investors.

Microsoft’s structural strengths are particularly compelling:

• Unrivalled ecosystem (Office 365, Teams, Azure, LinkedIn) locks in enterprise customers and builds high switching costs.
• Relentless innovation via multi-billion-dollar R&D, keeping Microsoft firmly at the frontline of generative AI, cybersecurity, and enterprise SaaS.
• Dominant market share positions the company as a reliable beneficiary of the ongoing global digital transformation.

Volume and Liquidity

Market liquidity for Microsoft is nothing short of exceptional, with a three-month average daily volume exceeding 24 million shares and a public float of 7.32 billion shares. Such sustained trading activity reflects unwavering institutional and retail confidence in the stock’s trajectory.

• Reduce bid-ask spreads
• Increase transaction efficiency
• Support market depth during periods of elevated volatility

Additionally, this float profile is conducive to dynamic valuation adjustments, ensuring price discovery remains robust and that institutional capital can rotate into positions with minimal friction—an important consideration as major funds revisit large-cap technology allocations.

Catalysts and Positive Outlook

Several powerful catalysts reinforce the positive investment outlook for Microsoft as 2025 unfolds:

• Artificial Intelligence: Azure’s +33% YoY cloud growth is directly fuelled by AI product integration, with 16 percentage points attributed to AI demand alone. Management projects AI-specific revenues on track to top $10 billion annualised, reflecting both existing enterprise commitments and new use cases.
• Cloud Leadership: Microsoft’s dynamic cloud momentum, robust pipeline, and global reach uniquely position it to outpace rivals, even amidst intense competition from AWS and Google.
• Strategic Partnerships: Major agreements—such as the Barclays AI deal—continue to validate Microsoft’s innovation agenda and strengthen recurring revenue streams in high-value verticals.
• Geographic Expansion: Momentum in key international territories further amplifies Azure’s growth curve and enables cross-selling across the broader Microsoft ecosystem.
• Analyst Sentiment: The consensus 12-month target price is $514.07, implying an 11.6% upside from today’s levels. Target ranges from $475 to $600 highlight broad-based conviction in the stock's re-rating potential.
• ESG Leadership: Ongoing commitments to sustainability and ethical AI signal not only risk mitigation but also a proactive approach in meeting client, regulatory, and societal expectations.

Furthermore, with the next financial results due in late July/early August 2025, investors stand at the threshold of potentially significant news-flow and upward estimate revisions.

Investment Strategies

From a portfolio construction perspective, Microsoft offers compelling arguments across multiple time horizons:

• Short-Term: The current trading range above key support ($453.35) and just under resistance ($464.53) creates a fertile environment for tactical accumulation, particularly for investors looking to position ahead of the upcoming earnings release or in anticipation of a technical breakout.
• Medium-Term: Continued positive news-flow from strategic partnerships and new AI launches, combined with solid financial momentum, supports a holding period strategy of several months to capture revaluation and growth.
• Long-Term: Microsoft’s unmatched brand equity, recurring-revenue business model, and outsized presence in transformative technologies (AI, cloud, SaaS) justify viewing the stock as a durable core holding within any technology-focused equity allocation.

For investors seeking optimal entry, technical retracements towards current support levels or mild consolidations ahead of major catalysts may present particularly attractive opportunities. Meanwhile, the current upward trajectory and momentum indicators suggest that any pause is likely to be temporary in the context of an ongoing bullish phase.

Is it the Right Time to Buy Microsoft?

Microsoft stands at the nexus of technological innovation, durable financial strength, and near-unmatched momentum in core growth markets. The combination of sector leadership, accelerating cloud/AI demand, top-tier execution, and strong technical and fundamental signals creates a foundation likely to reward investors seeking both growth and resilience.

Key strengths underpinning this view include:

• Strong track record of outperforming analyst consensus
• Clear evidence of sustained revenue and earnings acceleration
• Exceptional liquidity and institutional participation
• Well-defined bullish technical posture, with support and breakout levels aligning
• Multiple, well-identified growth catalysts across AI, cloud, and global expansion

Given these factors, Microsoft seems to represent an excellent opportunity for those aiming to capture both near-term and long-term upside in the technology sector. The current market structure, in conjunction with the company’s remarkable execution and outlook, justifies renewed interest and consideration of the stock as a cornerstone allocation within a diversified portfolio.

In sum, MSFT may be entering a new bullish phase—one that investors, especially in the Irish and broader European market, would be wise to keep firmly on their radar given the considerable upside on offer across multiple timeframes.

How to buy Microsoft stock in Ireland?

Buying Microsoft stock online is straightforward and secure for investors in Ireland, provided you use a regulated broker. There are two main ways to gain exposure: you can buy shares outright (“spot buying”), or trade with Contracts for Difference (CFDs). Spot buying gives you actual ownership of shares, while CFDs let you speculate on price movements with leverage, without owning the stock. Each method has its own advantages and risks—if you’re unsure which is best for you, take a look at the comprehensive broker comparison further down this page.

Spot buying

When you buy Microsoft stock for cash via a broker, you become a direct shareholder. This means you own actual shares, can benefit from dividends, and participate in the company’s growth over time. Irish brokers typically charge a fixed commission per order, usually ranging from €4 to €10. Most operate in euro, but since Microsoft is listed in USD, currency conversion fees may also apply.

Informations importantes

For example, if Microsoft shares are trading at $458.68, and you invest $1,000 (about €925), you can purchase around 2 shares ($917.36), with a $5 brokerage fee deducted, leaving a small cash balance.
✔️ Gain scenario:
If the Microsoft share price rises by 10%, your shares are now worth about $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade Microsoft shares without owning them, speculating on price rises or falls. CFDs are popular for their leverage—meaning you can take a larger position with a smaller initial investment. Costs typically include the spread (the difference between buy and sell prices) and overnight financing fees for leveraged positions.

Informations importantes

For example, with a $1,000 deposit and 5x leverage, you can open a position on Microsoft worth $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 investment (excluding fees and overnight costs).

Final advice

Before investing, it’s important to compare brokers’ fees, commissions, and service conditions to find the right fit for your needs—costs can make a significant difference to your returns over time. Whether you choose spot buying or CFD trading depends on your financial goals and risk tolerance. For a detailed comparison of leading Irish brokers and their offers, see the comparison table further down the page.

Our 7 tips for buying Microsoft stock

The latest news about Microsoft

Microsoft achieved strong Q1 FY2025 financial results exceeding analyst expectations with robust cloud growth. In its latest quarterly report, Microsoft delivered revenue of $65.59 billion, a year-over-year increase of 16%, and reported earnings per share of $3.30, beating consensus forecasts. This performance was driven especially by Intelligent Cloud, which saw revenues rise 21% to $26.8 billion, and Azure and cloud services posting a 33% jump. The overall Microsoft Cloud segment reached $38.9 billion, marking a 22% surge, underlining the company’s continued leadership in cloud infrastructure, which is acutely relevant for businesses and institutions in Ireland relying on scalable digital solutions.

Microsoft announced and expanded strategic AI partnerships, including a major deal with Barclays, reinforcing its position in enterprise services across Europe. The conclusion of a significant agreement to provide AI solutions and workflow automation to Barclays supports Microsoft's AI capabilities in regulated financial sectors. This development resonates in Ireland where Barclays holds substantial operations, signaling likely spillover effects and enhanced enterprise digitalization in local financial services. Such partnerships strengthen the integration of Microsoft AI platforms with the Irish economy and promote regional adoption of transformative technologies.

Current consensus from analysts is “Strong Buy,” with upward price targets boosted by positive market sentiment and technical momentum. Recent technical analysis highlights a consensus recommendation to buy Microsoft shares, supported by positive indicators across multiple moving averages and a bullish MACD. The stock recently approaches its all-time high ($468.35) and holds a consensus price target of $514.07, representing an upside potential exceeding 11%. Irish institutional and retail investors, many of whom gain exposure through US markets or index funds, are likely to benefit from these favorable signals.

Microsoft’s continued expansion and cloud infrastructure investment in Europe, including Ireland, underpin local digital transformation and attract new enterprise clients. Microsoft maintains a significant presence in Ireland, operating European headquarters and major data centres, and serving as a critical partner for digital transformation across public and private sectors. Recent announcements about further cloud and AI innovation, with increased focus on European compliance and data localisation, are set to benefit Irish customers specifically, ensuring secure and scalable infrastructures under local regulatory frameworks.

The trajectory of Microsoft’s cloud and AI segments, with projected double-digit growth, positions the company as a growth leader relevant for Irish tech and finance sectors. Management has guided for ongoing Azure growth of 31-32% in the coming quarter and annualized AI-related revenues heading toward $10 billion. These robust projections highlight Microsoft’s competitive edge and capacity to capitalise on accelerating demand for advanced digital services in Ireland, a hub for global technology, enterprise, and fintech industries.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.