KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Microsoft (NASDAQ: MSFT) saw a massive $130 million bullish options trade on Thursday — a sign of investor confidence in the tech giant’s long-term AI potential, even as its shares slipped 2.8% after earnings.
Big Bet on Microsoft’s Future
An investor snapped up 30,000 call options giving the right to buy 3 million Microsoft shares at $500 by Jan 16, 2026.
The trade represented over 98% of total option volume and was nearly 3x the open interest at the time.
Despite the stock dip, this aggressive call buying underscores market belief that Microsoft’s AI strategy will deliver strong returns ahead.
AI Spending Surges as Cloud Demand Soars
Microsoft reported that capital expenditures (CapEx) — including finance lease assets — jumped 75% YoY to $34.9 billion in its fiscal first quarter ended Sept. 30.
That figure came in 16% higher than analysts expected, as the company accelerates spending on AI infrastructure and GPU/CPU capacity to support Azure’s surging demand.
Azure & Cloud Revenue: Up 39% YoY (constant currency) — beating the 37% consensus forecast.
CFO Amy Hood said CapEx will continue to rise sequentially, with FY2026 growth outpacing FY2025, driven by higher AI-related investments.
Analysts Stay Overwhelmingly Bullish
Morgan Stanley reiterated its bullish stance, urging investors to “buy on any pullbacks.”
Analysts cited Microsoft’s dominant position across key tech growth areas — AI, Security, Cloud, Data Analytics, and Digital Transformation — and said the stock remains “well underpriced” despite a 25% rally this year that briefly pushed its market cap above $4 trillion.
Analyst Sentiment: 99% of 73 analysts rate MSFT as a Buy
Average Price Target: $631.18 — implying ~20% upside from current levels
Investor Takeaway
Microsoft’s AI investment wave may be squeezing margins short term, but investors see it as the foundation for long-term dominance in cloud and enterprise software.
The $130M options bet and near-unanimous analyst optimism reinforce one message: Wall Street is still betting big on Microsoft’s AI future.
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