Microsoft Shares Slide Over 30% on Slowing Growth and $650B AI Capex Surge
Microsoft shares have tumbled over 30% from their 52-week high following a quarter of slowing sales growth and commitments to aggressive capital spending. Industry-wide AI infrastructure capex is projected to exceed $650 billion in 2026, intensifying margin pressure as higher interest rates discount future earnings.
1. Shares Plunge Over 30%
Microsoft stock has fallen more than 30% from its 52-week peak after reporting a quarter marked by slowing revenue growth and signaling aggressive spending on capital projects.
2. AI Infrastructure Capex Surge
Analysts expect capital expenditures on AI infrastructure by major tech firms, including Microsoft, to top $650 billion in 2026—up 60% from 2025—raising concerns over profit margin compression.
3. Macroeconomic and Investor Rotation
Elevated oil prices have reignited inflationary pressures, reinforcing a higher-for-longer interest rate outlook that discounts future earnings, while some institutional investors shift from growth stocks toward energy, defense and manufacturing sectors.