"It is down over 16% since the start of November, and the slide looks to be getting worse, even though there isn't a scare of any kind. This is rather puzzling, as Microsoft is a key part of the AI buildout and one of the fastest-growing hyperscalers. Its Azure cloud computing platform is set to overtake AWS as the largest on the block. Azure is especially popular with AI clients like OpenAI."
"Is Microsoft the AI company that isn't? It wasn't a long time ago that Microsoft announced it was working on its own in-house AI model to reduce dependency on OpenAI. These models were released and made some headlines last year, but then quickly faded into the background. Most other tech companies have not been resting on their laurels and have continued advancing their own AI models."
Microsoft's stock has declined sharply since October despite strong financial results and continued AI-related investments. The company remains a major AI infrastructure provider through Azure, which is projected to challenge AWS and is popular with AI customers like OpenAI. Microsoft committed roughly $80 billion to capacity buildout and has developed in-house AI models, but those efforts have not kept pace with rivals. Alphabet has been prolific with high-performing models, Anthropic is advancing toward profitability, and Apple is partnering with Google on AI. Microsoft benefits indirectly from OpenAI's large-scale spending through Azure, which grew about 40%.
Read at 24/7 Wall St.
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