July 30 (Reuters) - Microsoft (MSFT.O), opens new tab added nearly $450 billion in market value on Thursday, the largest one-day ​gain on record for a company, after it forecast stronger-than-expected cloud ‌growth and signaled continued cash generation through its new fiscal year.

The software giant's shares closed up more than 15%, lifting its market capitalization to $3.35 trillion, surpassing chip giant ​Nvidia's (NVDA.O), opens new tab previous record one-day gain of $441 billion on April 9, ​2025, according to LSEG data.

"Microsoft reported a very strong quarter ⁠and it struck the tone markets are looking to hear as the ​key drivers of growth came from the cloud and AI divisions," said ​Brian Mulberry, chief market strategist at Zacks Investment Management.

The results offered fresh evidence that Microsoft's massive AI investments are beginning to pay off, helping ease investor concerns that ​heavy spending on data centers and computing infrastructure could outpace demand.

Microsoft ​has lagged some of its "Magnificent Seven" peers this year, with its stock down more ‌than 18% ⁠up to Wednesday's close.

At least nine brokerages raised the target price on the stock, with the mean target now $560.90.

Microsoft said its spending plans remain unchanged and that it expects capital expenditures of $50 billion for the fiscal ​first quarter of ​2027 and $175 billion ⁠for the 2026 calendar year.

In its first quarter, Microsoft expects Azure to grow 45% on a constant-currency basis, ​well above analysts' estimate of a 40.92% increase, according ​to Visible ⁠Alpha data.

"The key question was whether it could shift the conversation from how much it is spending on AI to what it is earning from ⁠those ​investments, and the results suggested meaningful progress," ​Direxion's head of capital markets, Jake Behan, said.