Microsoft Holds Up in AI Chip Selloff as $37B ARR Bolsters Megacap Status

Microsoft shares proved resilient on June 5 amid a broad selloff in semiconductor and memory stocks, positioning the software giant as a steadier AI exposure versus hardware names. The outperformance follows a string of bullish catalysts, including Jefferies’ June 4 reaffirmation of its $575 Buy rating citing platform differentiation and AI CEO Mustafa Suleyman’s emphasis on Microsoft’s lower pricing versus Anthropic. Fiscal Q3 results released earlier in the period showed 18% revenue growth, 40% Azure expansion, and AI annual recurring revenue surging 123% to a $37 billion run rate, supported by a $627 billion commercial backlog and heavy but demand-backed capex.