Microsoft (NASDAQ: MSFT) has been on fire so far in 2023, driven higher by a resurgence in technology stocks amid a broader market rally. Shares of the software and cloud technology specialist have gained 34% so far this year, more than double the gains of the S 500, which is up 17%. This is a welcome change compared to last year, when Microsoft stock slumped more than 28%.

The rally in 2023 has been fueled by the company's improving financial performance. Another driver has been Microsoft's significant investments in generative artificial intelligence (AI), which appear poised to pay off handsomely. These factors have increased investor confidence that the headwinds that marked much of last year are abating, allowing the company to capitalize on the coming AI revolution.

What does this mean for investors who missed out on Microsoft's current rally? Should they buy now in anticipation of further gains or avoid the stock because of the quick run-up and the persistent slump in the personal computer (PC) market? Let's see what the evidence suggests.

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Source Fool.com