The software industry has undergone a dramatic reversal, shifting from a must-own sector to one investors are fleeing en masse as fears that artificial intelligence (AI) advancements will disrupt traditional business models.
Microsoft: Cloud And AI-Driven Stability
Microsoft stock's 15% year-to-date decline stems primarily from investor anxiety over massive AI-related capital expenditures and a slight deceleration in Azure's growth rate reported in late January.
Microsoft hasn't been this cheap in a long time. The Trade Desk's valuation has reached unreal levels.
Microsoft's (NASDAQ: MSFT) rough start to 2026 may be easing as seasonality performance suggests the equity is on the verge of turning around heading into March.
Two of tech's most dominant companies just hit a milestone investors hoped to avoid.
Microsoft (MSFT) faces diminishing returns and upside, with recent performance lagging the S&P 500 and a B- grade in my system. MSFT's massive capital outlays for AI infrastructure are capital-intensive, supporting already-booked revenue rather than unlocking new demand. Azure growth is decelerating, while spending accelerates, pressuring margins and free cash flow and raising concerns about MSFT's durable compounder status.
Microsoft (MSFT) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Wall Street's panic over artificial intelligence replacing enterprise software is misguided, according to HSBC's latest research report. The investment bank argues 2026 marks a crucial shift from AI infrastructure build-out to actual monetisation through software, positioning established platforms to benefit rather than suffer from the technology's rise.
Microsoft is rated 'Strong Buy' following a sharp post-earnings sell-off driven by perceived OpenAI concentration risk. MSFT's Azure and cloud services grew 39% YoY, but CapEx intensity is high due to AI infrastructure demands, especially from OpenAI. The market misjudges OpenAI's impact; MSFT benefits across a spectrum of outcomes, not just binary success or failure scenarios.
The Valkyrie Bitcoin Miners ETF ( NASDAQ:WGMI ) has delivered 86% returns over the past year, but recent volatility tells a more complicated story.
Microsoft stock (NASDAQ: MSFT) is down 15% year-to-date, driven largely by investor anxiety over heavy capital expenditures and a slight deceleration in cloud growth reported in late January.