Microsoft Corp. (NASDAQ:MSFT) stock rose about 3% Friday as investors favored large-cap technology stocks amid a broader market advance.
The Nasdaq and S&P 500 each gained 0.53%. The technology sector led the market with a 1.02% increase.
Microsoft Expands Copilot
Separately, Microsoft on Friday unveiled a redesigned Copilot with new Home, Code and Autopilot capabilities as it expands its push into workplace AI.
Home combines Chat and Cowork while adding Word, Excel and PowerPoint directly to Copilot. Code lets users build apps, dashboards and automated workflows using natural-language prompts. It runs on technology that also powers GitHub Copilot.
Meanwhile, Autopilot is designed as a persistent AI agent that can handle recurring tasks, follow up on projects and continue working without constant prompts. It operates within a company’s Microsoft environment with defined permissions and governance.
Microsoft said Home and Code will begin rolling out through its Frontier program in the coming weeks. Autopilot will expand to private preview at the end of September. The company also introduced new FinOps tools aimed at helping businesses manage AI spending.
Deep Discounts for Large Companies
The launch follows a recent report that Microsoft plans to cut Copilot prices for large corporate customers. The Information reported Tuesday that discounts could range from about 30% for customers buying more than 1,000 seats to as much as 50% for purchases above 10,000 seats.
The discounts could begin as soon as October and may be tied to large seat commitments and additional usage-based spending. Copilot currently starts at $30 per user per month.
AI Spending Set To Surge
Microsoft’s monetization push comes as hyperscaler AI spending accelerates.
Goldman Sachs strategists led by Ryan Hammond expect capital spending by Alphabet Inc., Amazon.com Inc., Microsoft, Meta Platforms Inc. and Oracle Corp. to rise more than 50% to $1.2 trillion in 2027, Bloomberg reported.
The group is on track to spend about $800 billion in 2026. Goldman estimates hyperscalers need roughly $300 billion in annual AI revenue to break even on those investments.
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Microsoft Technical Analysis
Microsoft remains in a long-term uptrend.
The stock is trading 3.1% above its 20-day simple moving average of $500.01. It is also 8.4% above its 50-day SMA of $475.80 and 19.3% above its 200-day SMA of $432.06.
The 20-day SMA remains above the 50-day average. In addition, the 50-day SMA crossed above the 200-day SMA in August, forming a bullish golden cross.
However, momentum has cooled. The MACD is below its signal line, while the histogram remains negative. That suggests the broader trend is still positive, but the pace of gains has slowed.
Near-term resistance sits around $518. Support is near $486.
Analyst Outlook
Microsoft carries a Buy consensus rating and an average price forecast of $567.04.
Stifel upgraded Microsoft to Buy on Sept. 23 and raised its price forecast to $575. Oppenheimer maintained an Outperform rating and lifted its forecast to $570 on Sept. 22. Cantor Fitzgerald maintained an Overweight rating and raised its forecast to $608 on Sept. 21.
Microsoft ETF Exposure
Microsoft is a major holding in several large growth and technology ETFs. It represents about 9.59% of the Vanguard Growth ETF, 9.83% of the Technology Select Sector SPDR Fund and 9.75% of the iShares Core S&P U.S. Growth ETF.
Its large weighting means fund flows into or out of those ETFs can also influence trading in Microsoft shares.
Price Action
Microsoft shares were up 3.01% at $512.92 at the time of publication Friday, according to Benzinga Pro data.
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