microsoft stock outperforms sp 500 in ai-driven revenue growth

Microsoft Azure revenue rose 40% year over year in fiscal 2026 Q3 as AI demand surged. Its AI business revenue reached $37 billion at a 123% annual growth rate. Microsoft stock is down 17% this year versus S&P 500's 7% gain despite strong cloud and AI performance. The company's cash from operations valuation suggests a compelling buy opportunity.