MSFT is trading at 3% down now at $477.42 as investors reassess heavy AI spending and valuation after Microsoft committed $17.5 billion to new AI infrastructure in India, plus additional multibillion‑dollar investments in Canada.
Investors are reassessing Microsoft's valuation following massive AI infrastructure commitments, including the $17.5 billion investment in India, leading to growing concerns that heavy AI spending could pressure margins and impact future profitability.
- The stock has experienced a significant pullback of more than 13% from its recent record highs.
- Technical analysis highlights breakdowns below key support levels, suggesting potential further weakness.
- Rising AI-related costs and margin pressure concerns have led analysts to justify lower fair value estimates, currently around $420 per share.