Microsoft’s Stock Revival Hinges on Showing Growth From AI Binge
- Heavy spending on AI seen as necessary but has capped gains
- Shares slipped in back-half of 2024, lagging the Nasdaq 100
A Microsoft Corp. booth.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Microsoft Corp. has plowed tens of billions of dollars into artificial intelligence. With its stock struggling, the key question is how quickly those investments can prove to be successful.
The worst performer among the Magnificent Seven since hitting a record in July, Microsoft shares have stumbled under the weight of ambitious spending and signs that adoption of its AI services has been slower than hoped. The cooling hype risks leaving the stock vulnerable, given it trades at an elevated multiple.