Microsoft Shares Down 34% Since Peak as Nasdaq 100 Hits 11% Correction
Microsoft shares have fallen 34% since the October peak, contributing to the Nasdaq 100’s 11% correction as the index slid to 23,335.13. Valuations for the Magnificent Seven have reset to 21 times estimated earnings, while projected profit growth for 2026 remains at 19%.
1. Nasdaq 100 Enters Correction
The Nasdaq 100 dropped 1.1% to 23,335.13, marking an 11% slide from its October peak and its first correction since April 2025. Rising geopolitical tensions and investor hesitation over AI spending returns have shifted market sentiment away from large tech names.
2. Microsoft Stock Drag
Microsoft has emerged as a notable drag on the index, with shares down 34% since October 29. Concerns over the timing and scale of returns from AI infrastructure investments have weighed heavily on its stock performance.
3. Valuation Reset and Profit Growth
The seven largest tech firms now trade at about 21 times estimated earnings, down from 28 times at the October peak. Despite the pullback, the group—including Microsoft—is projected to deliver 19% profit growth in 2026, suggesting potential upside if confidence in AI monetization stabilizes.