Microsoft Stock Just Did Something It Hasn't Done in 1 Year. Here's What May Happen Next.
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By Adria Cimino – Jan 29, 2026 at 10:40AM ESTKey PointsMicrosoft is a company that’s winning in the high-growth artificial intelligence market.The company’s cloud revenue soared in the double-digits in the recent quarter.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: MSFTMicrosoftMarket Cap$3.6TToday's Changeangle-down(-12.40%) $59.71Current Price$421.92Price as of January 29, 2026 at 11:12 AM ETThis could be a key moment for anyone interested in buying Microsoft stock.Microsoft (MSFT 12.40%) is one of the major players in an industry poised to deliver explosive growth in the coming years: artificial intelligence (AI). In fact, this tech giant has already been benefiting from AI as it offers something customers need a lot of these days -- capacity for AI workloads. In recent quarters, this has resulted in growth for Microsoft Azure, the company's cloud business, as it offers AI infrastructure. And in the company's latest quarterly earnings report, delivered just this week, this positive message continued. Microsoft Azure and other cloud revenue surged 39% in the period, and chief executive officer Satya Nadella said, "we are only at the beginning phases of AI diffusion." So there may be a lot more growth to come. Meanwhile, Microsoft's stock hasn't reflected this optimism in recent weeks -- in fact, it recently did something it hasn't done in a year. Let's check it out and see what may happen next. Image source: Getty Images. Fundamentals vs technical analysis First, it's important to note that there are various ways to look at a stock's performance and consider what's ahead. One of those is by looking at fundamentals such as earnings reports and financial health. Another is technical analysis, which considers certain price, volume, and other trading patterns and how they've impacted performance in the past. Considering fundamentals is the best way for investors to understand whether a stock is a solid long-term bet. But every once in a while, you may also look at a technical analysis pattern for an idea of what a stock might do in the days or weeks to come. ExpandNASDAQ: MSFTMicrosoftToday's Change(-12.40%) $-59.71Current Price$421.92Key Data PointsMarket Cap$3.6TDay's Range$421.04 - $442.4652wk Range$344.79 - $555.45Volume3MAvg Vol26MGross Margin68.76%Dividend Yield0.71% And this brings me to the move Microsoft recently made. The stock formed a death cross, something that happens when its short-term moving average crosses under its long-term moving average. The last time Microsoft stock did this was last spring. MSFT 50-Day Simple Moving Average data by YCharts A bearish pattern Generally, when this happens, it suggests a bearish pattern, and that means additional declines may follow. Now, does this mean you should avoid Microsoft stock? Not at all. In fact, you may even use this as a buying opportunity, considering the tech giant's solid long-term outlook. By investing on the dip, you'll get in on the stock at a lower valuation. MSFT PE Ratio (Forward) data by YCharts It's also important to point out that a technical pattern such as this one may easily be interrupted by positive news from the company or industry. And the declines following a death cross aren't necessarily long-lasting. All of this means that this technical analysis move that may look ominous actually represents a good time to get in on a quality long-term market giant -- and this time it's potential AI winner, Microsoft.Read NextJan 29, 2026 •By Sean WilliamsBillionaire Ole Andreas Halvorsen Dumped His $39 Billion Fund's Stakes in Nvidia and Amazon for Another Trillion-Dollar SuperstarJan 28, 2026 •By Catie HoganPrediction: This Artificial Intelligence (AI) Stock Will Crush the Market in 2026Jan 27, 2026 •By John BallardThe Best Stocks to Invest $2,000 Right NowJan 27, 2026 •By Danny Vena, CPAMicrosoft Releases Powerful New AI Chip to Take on NvidiaJan 27, 2026 •By James BrumleyForget Quantum Computing Stocks: This Unavoidable Platform Is Where Big Customers Are Actually GoingJan 25, 2026 •By John Ballard2 AI Stocks to Buy in January and Hold for 5 YearsAbout the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedMicrosoftNASDAQ: MSFT$421.92 (0.12%) $59.71*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.