Microsoft (NASDAQ: MSFT) has had an epic run so far in 2023, driven higher by the general recovery of the technology sector amid a broader market rally. Shares of the cloud computing and software specialist have gained 38% year to date (as of this writing), nearly triple the 13% gains of the S 500. This is in stark contrast to its performance in 2022, when the stock plunged by nearly 29%. 

This remarkable comeback was driven by a combination of factors. While Microsoft's solid financial results no doubt fueled its rebound, it was the company's quick pivot to embrace generative artificial intelligence (AI) that kicked the stock into overdrive. This has given investors confidence that the company is well positioned to participate in the broader market recovery and the massive opportunity of AI.

What does this mean for investors who sat out the run-up in Microsoft's stock price? Should they buy now in anticipation of additional gains to come or stay away from the stock because of its somewhat pricey valuation and the persistent downturn in the personal computer (PC) market?

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Source Fool.com