Microsoft shares soared more than 16% [1] on Thursday, putting the company on track for a record one-day gain in market value.

This surge signals a shift in investor sentiment regarding artificial intelligence. The rally suggests that the market now views the massive capital expenditures required for AI as productive investments rather than risky costs.

The company added $450 billion [2] in market value during the session. This represents the biggest one-day gain in stock market history [3]. According to some reports, it is the largest rise for the company in 18 years [4].

The growth followed a report that Microsoft expects to continue generating cash through its new fiscal year. The company also forecast cloud growth that exceeded Wall Street expectations [1].

Investors reacted positively to the robust outlook for Azure, the company's cloud computing platform. The strong earnings and Azure forecasts helped ease previous concerns over the high cost of AI spending [2].

BNN Bloomberg Earnings said the shares soared more than 16% [1] on Thursday. The jump in valuation reflects a high level of confidence in the company's ability to monetize its AI integration across its cloud services.

“Microsoft recorded the biggest one-day gain in stock market history after surging by $450bn.”

The record-breaking addition of $450 billion to Microsoft's market capitalization indicates that the 'AI bubble' narrative is being countered by tangible cloud growth. By exceeding Wall Street expectations for Azure, Microsoft has provided a proof-of-concept that generative AI is driving actual revenue growth in cloud infrastructure, potentially setting a benchmark for other tech giants investing heavily in the sector.