On May 29, Microsoft rose 3.06% in regular trading, trading at $439.3/share with trading volume of $3.852 billion. The rally was driven by a confluence of positive catalysts including a major defense contract and upcoming AI product launches.
The U.S. Department of Defense announced a five-year, $9.69 billion agreement consolidating Microsoft enterprise software licenses across all military branches, intelligence agencies, and the U.S. Coast Guard into a single contract framework. The deal covers Microsoft 365 subscriptions, cloud services, and on-premise software licensing, reinforcing Microsoft's dominant enterprise position within the U.S. defense apparatus while reducing redundant procurement costs.
Additionally, Microsoft is set to unveil a new suite of homegrown AI models at its annual Build conference next week, including a coding model designed to boost competitiveness of GitHub Copilot, along with specialized models for transcription, reasoning, speech, and image processing. Separately, data center operator IREN borrowed approximately $3.6 billion to purchase Nvidia GPUs designated for a Microsoft AI data center in Texas, signaling continued infrastructure expansion. HSBC maintained a Buy rating on Microsoft with a $571 target price, citing its Anthropic partnership as a potential $43 billion annual revenue opportunity by 2030.
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