Why Microsoft Stock Is Surging Today
Key Points
Microsoft and other software stocks are rising today on hopes that the war with Iran could be resolved in the near future.
Microsoft was also added to a list of Goldman Sachs' top stock picks.
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Microsoft (NASDAQ: MSFT) stock is seeing another day of strong gains in this Monday's trading, with its share price up 5.2% as of 1:50 p.m. ET. The S&P 500 had risen 1.4% at the same point in the daily session, and the Nasdaq Composite was up 2.1%.
The broader market is rallying today on news that the U.S. and Iran are once again negotiating to end the war. Microsoft stock is also getting a continued boost from the stellar earnings report that it published last week and new coverage from Goldman Sachs.
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Software stocks are rallying in response to the latest Iran war news
Over the weekend, President Donald Trump said that the basic framework for a deal to end the Iran war and reopen shipping lines through the Strait of Hormuz was in place and that negotiations between the countries would formally resume today. While concerns about competition from Chinese rivals have depressed bullish momentum for semiconductor stocks, leading artificial intelligence (AI) software companies are generally seeing strong gains in response to the geopolitical news today.
Goldman Sachs adds Microsoft to its U.S. Conviction List
Before the market opened this morning, Goldman Sachs released its latest U.S. Conviction List -- which details the investment firm's top picks. With the report, the firm's analysts reiterated a buy rating on the stock, maintained a price target of $640 per share, and cited the company's ideal position in the AI industry and capabilities for enterprise integration as reasons for including the company on its list of top buys. While Goldman was already bullish on the stock, the blockbuster quarterly report that Microsoft published last week has significantly shifted the narrative surrounding the company -- and shares could keep rallying in the near term.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Microsoft. The Motley Fool has a disclosure policy.
