The stock market appears to be in the middle of quite the storm as of late. In the final days of January, a Chinese start-up called DeepSeek sent shock waves around the world after it released an artificial intelligence (AI) model similar to ChatGPT -- and claims to have trained its AI with legacy architectures that aren't widely leveraged by U.S. developers.
Microsoft decided to invest an additional 700 million dollars in Poland, Polish Prime Minister Donald Tusk said on Monday.
Satya Nadella became CEO of Microsoft (MSFT -0.51%) 11 years ago this month. At the time, he took over a software giant whose Windows operating system had been eclipsed by the rise of the smartphone.
With companies pouring billions into Artificial Intelligence, smart investors know that this is where the money lies.
Microsoft (MSFT -0.51%) has quickly emerged as a leading player in the generative AI race through internal investments in its products and services and billions of dollars in investments in ChatGPT creator OpenAI.
The emergence of Chinese startup DeepSeek has raised fears of AI distillation, negatively impacting Mag 7 stocks including Microsoft and Amazon. The downside may represent an opportunity due to the way the software giant owns and controls the AI stack through its substantial investment in OpenAI. Moreover, by integrating AI across its product line, margins can be improved further.
Recently, Zacks.com users have been paying close attention to Microsoft (MSFT). This makes it worthwhile to examine what the stock has in store.
Although the Magnificent 7 tech stocks have been the primary drivers for the bullish S&P 500 run over the past few years, they do not trade uniformly and in tandem.
Artificial intelligence will bring major upheaval to wealth management, a Microsoft executive said, as the technology's potential to process information vastly reduces the hurdles required to compete with established banks.
For almost the entirety of Microsoft's existence, the company spent far more on R&D than CAPEX. MSFT, like others in the Mag 7, is making a pronounced "cross over" from spending on immediately deductible items under operating expenses and moving those to capitalized expenses. While Open AI is independent, it vicariously functions through Microsoft at this moment in time. Microsoft is more and more being associated with Open AI's ChatGPT.
Despite the tariff and DeepSeek turmoil, the U.S. stock market has been going strong in 2025, with the benchmark S&P 500 index recording a 3.13% rise in the year-to-date (YTD) chart.
One of the most active members of buying and selling stocks in recent years has been U.S. Rep. Josh Gottheimer (D-N.J.