Microsoft’s AI-Driven Stock Slump Sparks Market Concerns
Microsoft Corp. teeters on the edge of its worst losing streak since 2011, with shares dipping 0.8% amid growing skepticism about AI market sustainability. An eight-day slide has erased $350 billion in market value, mirroring the tech giant's November 2011 downturn.
The company counters this pressure with a $9.7 billion bet on AI infrastructure, securing Nvidia-powered computing capacity through Australia's IREN Ltd. This follows multiple billion-dollar data center deals as Microsoft races to dominate generative AI infrastructure.
Tech sector volatility raises questions about hyperscalers' capital expenditure cycles. Microsoft's aggressive GPU acquisitions suggest anticipation of prolonged AI demand, despite current market jitters about overcapacity.