Azure Momentum and Copilot Usage Data Drive Fundamental Strength for Microsoft (MSFT)

ClearBridge Investments, a global equity manager, recently published third-quarter 2026 commentary for its "Large Cap Growth Strategy". The letter can be downloaded here. In the third quarter, leadership among large growth stocks shifted from high-momentum semiconductor names to companies with clearer AI monetization paths. The ClearBridge Large Cap Growth Strategy outperformed its Russell 1000 Growth Index benchmark, benefiting from strong stock selection and disciplined valuation approaches. Despite volatility and a selloff in higher-beta AI stocks, the S&P 500 Index and NASDAQ Composite posted gains. The benchmark Russell 1000 Growth Index posted a modest gain of 0.9% while the Russell 1000 Value Index was up 2.6%.