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AI Data Center Demand Revives Microsoft After Selling Pressure

By: 
Lucas Downey
Microsoft logo

Institutional inflows push Microsoft Corporation (MSFT) shares up 51.4% since July lows.

MSFT is a technology giant and hyperscaler pumping billions of dollars into AI and cloud growth to amplify its software and services empire. The company’s first-quarter fiscal 2027 earnings report showed revenue of $92.3 billion (a 19% year-over-year gain), driven by cloud revenue of $63.9 billion (a 30% jump), per-share earnings of $4.89 (an 18% rise), $10.2 billion returned to shareholders via dividends and share repurchases, and quarterly revenue guidance of up to $97.1 billion (representing 19% growth).

It’s no wonder MSFT shares are up 10% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

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Big Money Returns for Microsoft

Institutional volumes reveal plenty. In the last six months, MSFT has enjoyed strong investor demand, which we believe to be the return of institutional support.

Each green bar signals unusually large volumes in MSFT shares. They reflect our proprietary inflow signal, pushing the stock higher:

A Microsoft Corporation (MSFT) stock-price chart spans Nov. 10, 2025, to Nov. 10, 2026, with a blue price line and shaded area, green inflow bars, and red outflow bars. Prices fluctuate between about $350 and $500, dip near $350 around spring and summer, then climb above $525 by November; dollar axis ranges from $350 to $550.
Big Money inflows since the summer have pushed MSFT shares higher by 51.4% since July lows. Source: www.moneyflows.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Microsoft.

Microsoft Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, MSFT has had strong sales and earnings growth:

  • 3-year sales growth rate (+16.1%)
  • 3-year EPS growth rate (+23%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +20.1%.

Now it makes sense why the stock has been generating Big Money interest. MSFT has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Microsoft has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s garnered 100 outlier inflow signals since 1996 and is up 9,036% since its first appearance on the rare Outlier 20 report. The blue bars below show when MSFT was a top pick in the last decade…this is an institutional cornerstone:

A dark-themed stock chart shows Microsoft Corporation (MSFT) share prices from November 2016 to November 2026, with years along horizontal axis and dollar values up to $500 along vertical axis. Blue prices climb from roughly $10 to above $500, with several dips and teal vertical outlier markers; legend also lists yellow outlier outflows.
MSFT drew 100 outlier inflow signals since 1996 and is up 9,036% since its first appearance on the rare Outlier 20 report. Source: www.moneyflows.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Microsoft Price Prediction

The MSFT action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns MSFT in personal accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here.

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About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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