The company's massive investment in artificial intelligence (AI) infrastructure came under scrutiny following Chinese start-up DeepSeek's revelation that it has developed AI models at a fraction of the cost that the tech giant has spent so far.

When a stock breaks out of a well-formed base, you normally want to see the Relative Strength Rating exceed 80.

Microsoft's stock price, trading between $400-450 for a couple of months now, is back to levels I consider reasonable for another purchase amidst

It's worth noting that Microsoft isn't a cheap stock. Even after this move, Microsoft trades for about 30.5 times forward earnings estimates. Given the company's operating income growth of 17% year over year, this seems like a reasonable, but not dirt cheap, valuation.

Over the past few years, tech stocks have seen dramatic shifts driven by high-stakes mergers and acquisitions, with strategic bids redefining industry landscapes and stock valuations overnight. Now, attention has turned to Microsoft (MSFT) following news that the company is in talks to acquire TikTok,