Microsoft's shares have declined 24% year-to-date, facing scrutiny over its AI infrastructure investments. Despite reporting $81.27 billion in Q2 FY2026 revenue, a 17% year-over-year increase, a hiring freeze in its cloud unit has raised concerns. Capital expenditures reached nearly $37.5 billion in Q2, up 66% year-over-year, with projections of $146 billion for the full fiscal year. Azure's growth of 39% year-over-year has led to questions about whether spending is outpacing returns, reflected in mixed sentiment on Reddit.
"Microsoft's hiring freeze in its cloud unit has sparked concerns about its AI infrastructure investments, with shares down 24% year-to-date despite strong revenue growth."
"Capital expenditures hit nearly $37.5 billion in Q2, up 66% year-over-year, raising questions about sustainability of growth against projected spending of $170 billion in fiscal 2027."
Read at 24/7 Wall St.
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