TLDRs:
- MSFT gains amid Japan raid with shares rebounding 3 percent despite Azure cloud probe
- Nasdaq lifts broader tech rally as investors cheer Nvidia gains ahead of earnings
- AI investments drive momentum with Microsoft and Nvidia backing Wayve’s expansion in Europe
- White House focuses on data costs in March 4 meeting targeting AI data centers
Microsoft (NASDAQ:MSFT) shares rose sharply on Wednesday, closing at $400.63, up 2.99% for the session, before drifting slightly to $399.95 in after-hours trading.
The rebound followed news that Japan’s Fair Trade Commission raided Microsoft Japan to investigate potential antitrust violations tied to Azure cloud contracts. Regulators are examining whether Microsoft’s restrictions on customers using competing cloud providers may have limited competition.
Microsoft Japan confirmed it is “fully cooperating with the JFTC,” and sources indicate the Japanese authority may seek further clarification from Microsoft’s U.S. headquarters. While the raid has raised concerns among investors, the stock’s strong bounce shows resilience amid regulatory scrutiny, highlighting the market’s confidence in Microsoft’s cloud business.
Nasdaq Boosts Tech Momentum
Wednesday’s gains coincided with a broader tech rally on Wall Street. The Nasdaq composite rose 1.3%, driven in part by anticipation surrounding Nvidia’s (NASDAQ:NVDA) earnings report due after the bell. Investors are watching Nvidia closely, as its results could signal trends in AI-related spending, which often influences the entire tech sector, including Microsoft.
Microsoft’s stock has been under pressure in recent months, down roughly 28.5% from its record close of $542.07 in late October, and nearly 20% lower in 2026. Analysts note that the recent rally has brought shares back to long-term support levels, suggesting a potential foundation for stabilization if regulatory risks remain contained.
AI Funding and Strategic Investments
Beyond the U.S. market, Microsoft has been making notable moves in AI and technology investments. The British autonomous driving startup Wayve recently secured $1.2 billion in funding, with Microsoft and Nvidia among its investors. Wayve’s valuation now stands at $8.6 billion, signaling strong investor confidence in autonomous and AI-driven mobility solutions.
Additionally, Microsoft unveiled new AI-powered telecom tools at Mobile World Congress, and announced a partnership with Starlink to expand connectivity in remote regions. These strategic investments reinforce Microsoft’s commitment to AI and cloud innovation, providing long-term growth catalysts amid short-term regulatory pressures.
White House Meeting Highlights Data Costs
Looking ahead, Microsoft will join Meta and Anthropic at a White House meeting on March 4, focusing on a “Rate Payer Protection Pledge.” The initiative addresses concerns over electricity costs driven by large-scale AI data centers. Microsoft Vice Chair Brad Smith emphasized that the company supports efforts to ensure AI infrastructure does not lead to higher consumer energy bills.
While regulatory and operational risks persist, including potential outcomes from Japan’s probe, investors are showing optimism that Microsoft’s core cloud business and AI initiatives can sustain growth. Nvidia’s upcoming earnings report remains a key event, with analysts noting that results could provide further momentum, or volatility, for Microsoft shares in the near term.
Conclusion
Microsoft’s latest gains reflect a combination of resilient cloud business performance, strategic AI investments, and positive tech-sector momentum. While Japan’s regulatory probe adds an element of uncertainty, the market appears to be pricing in manageable risk. With Nvidia’s earnings and government scrutiny on the horizon, Microsoft stock could see further volatility, but also opportunity, over the coming weeks.
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