The US stock market has enjoyed a slight rebound this week after months of volatility. However, there has yet to be a major surge enjoyed by some of the biggest tech companies in the world. That may change for Microsoft (MSFT), as a recently announced $64 billion investment can power the stock well above $500.

The company has long been the standard-bearer for consumer technology offerings. That may be set to take an even bigger step forward before 2025 is in the history books. The Magnificent 7 stock continues to emerge as one of the most promising investment opportunities of the top-tier companies.

Microsoft (MSFT)
Source: Seeking Alpha

Also Read: Microsoft (MSFT) Called ‘AI Leader’ by Scotiabank Amid $470 Target

Microsoft to Surge Toward $500? Why One Key Announcement Can Help It Happen

The US stock market was in an increasingly fragile state on Tuesday. The S&P 500 was on the verge of ending a 6-day streak of gains, while markets were unable to make notable headway. A big reason for the stall was JPMorgan CEO Jamie Dimon, who issued a stark tariff warning. Specifically, he noted his observation of an “extraordinary amount of complacency” amid a market recovery.

Yet, that hasn’t derailed the potential for some of the biggest companies in the world to surge in the near term. Among them is Magnificent 7 stalwart Microsoft (MSFT), who announced a new $64 billion investment plan that could have the stock ready to barrel well above the $500 mark.

Microsoft MSFT Stock
Source: Seeking Alpha

Also Read: Microsoft (MSFT) Gets $650 Target as Analysts Project Historic 2025

According to a recent report, Microsoft announced the new investment toward creating “profitable AI-powered products” at its annual developer conference. Specifically, it is looking to leverage the technology to create practical consumer solutions through its own services like Microsoft 365 and Copilot.

The solution is an interesting way to meet demand and could pay off massively. There is no debate that the modern consumer is looking for more AI-assisted technology. Subsequently, Microsoft could have the answer. The stock had fallen less than 1% on Tuesday, trading at the $456 level. Moreover, it holds a median price target at $500, with bullish projection upside reaching heights of 42%.