In its latest SEC filing, Index Fund Advisors Inc. boosted its position in Microsoft Corporation by 34.1% during the third quarter. The firm acquired 2,388 additional shares, bringing its total ownership to 9,385 shares. As of the end of the quarter, this stake represented 0.2% of Index Fund Advisors’ overall holdings and ranked Microsoft as its 27th largest position. The fund’s Microsoft shares were valued at $4.86 million at the time of reporting.

Microsoft’s cloud computing division continues to benefit from surging demand for AI workloads and government contracts. During the latest quarter, Azure revenue growth accelerated to nearly 40% year-over-year, with enterprise customers facing capacity constraints as demand outstrips supply. The company also secured a new Air Force Cloud One task order worth approximately $170 million, reinforcing Azure’s leadership in defense and public sector cloud services and contributing to a commercial backlog that now exceeds $400 billion in contracted future revenue.

The board recently declared a quarterly dividend of $0.91 per share, payable in March to shareholders of record in February, marking a 25.9% payout ratio on trailing earnings. While analysts forecast continued double-digit revenue growth driven by cloud and AI services, Microsoft’s forward price-to-earnings multiple remains in the low 30s—below many pure-play software peers—reflecting confidence in durable margin expansion and free cash flow generation even as capital expenditures ramp to support AI infrastructure.