Microsoft continues gains for seven straight sessions

Microsoft (NASDAQ:MSFT) continued gains for seven straight sessions as the stock closed 0.55% higher, at $446.02 on Monday.

The tech giant gained 4.75% in the last six trading sessions. The stock has gained more than 17% so far this year, compared to an over 27% rise in the broader S&P 500 Index.

MSFT is up 5% over the past one month. The stock closed 0.21% higher, at $443.57 on Friday.

According to an Axios report from over the weekend, the U.S. government has approved the export of advanced AI chips to a Microsoft-operated facility in the United Arab Emirates as part of the company’s collaboration with G42.

Microsoft’s $1.5B investment in the Abu Dhabi-based AI firm was reported in April. The deal would give the U.S. tech giant a minority stake and a board seat. However, the deal was scrutinized after U.S. lawmakers raised concerns that G42 could potentially transfer U.S. AI technology to China.

Seeking Alpa’s Quant rating has rated the Microsoft (MSFT) stock a HOLD, with a score of 3.43 out of 5. SA authors are also cautious and have rated the stock a HOLD.

The sell-side analysts, on the other hand, see Microsoft (MSFT) stock as a STRONG BUY, with 50 out of 55 analysts recommending Buy and above.

Seeking Alpha analyst Kenio Fontes believes Microsoft’s essential products and consistent revenue growth justify its premium valuation.

“Current valuation reflects expected growth, but potential positive surprises in cloud revenue and AI integration could enhance returns,” Fontes added.