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Microsoft shares climbed to their highest closing level of 2026, recovering from a sluggish start to the year as investors grew more confident in the company's artificial intelligence strategy and its monetization through cloud and enterprise products. The rally reflects broader Wall Street optimism about AI-driven revenue growth at large-cap technology firms. The turnaround marks a notable shift in sentiment after Microsoft underperformed peers earlier in the year, with investors now crediting management's AI investments and partnerships for renewed growth prospects.