Pershing Square to Disclose Microsoft Stake Citing AI Growth and $190B Capex
Pershing Square began buying Microsoft in February and will disclose a core stake in a 13F filing, calling its valuation compelling given AI-led growth in Azure and M365 Copilot. The stock has dropped over 15% since January despite a planned $190 billion 2026 capex program.
1. Pershing Square Positioning
Pershing Square Capital Management began accumulating Microsoft shares in February and will disclose the exact size of its core stake in an upcoming 13F filing. The move marks a continued pattern of opportunistic tech investments by the firm following recent underperformance in Microsoft’s stock.
2. AI Investment Thesis
Bill Ackman argues that Microsoft’s valuation fails to account for accelerated AI adoption through its Azure cloud platform and the M365 Office suite, which now includes the Copilot AI assistant at $30 per user. These product lines are highlighted as key drivers of future enterprise spending.
3. Capex Commitment
Microsoft has earmarked $190 billion for capital expenditures in 2026, a level of investment characterized as necessary to sustain cloud infrastructure growth and support AI development. This spending plan underpins expectations for revenue expansion in coming quarters.
4. Share Price Performance
Microsoft’s shares have tumbled more than 15% since January, pressured by a fourth-quarter cloud revenue growth miss and elevated capital spending. Investor concerns over competitive pressures in cloud and AI have weighed heavily on the stock.