Microsoft Stock Decline Reflects Broader AI Sector Concerns
Microsoft shares have slid nearly 8% in December amid growing investor skepticism about AI revenue potential. The downturn mirrors similar retreats across tech giants like Nvidia and Amazon, all heavily invested in artificial intelligence infrastructure.
Wall Street rumors suggest Microsoft may scale back AI product sales—a claim the company denies. "We're accelerating AI investments, not reducing them," a spokesperson told CNBC. Yet the stock continues to struggle, falling from October's $542 peak to $477 as questions mount about AI's commercial viability.
The selloff highlights a market recalibration. After years of exuberance around AI capabilities, investors now demand clearer paths to profitability. Microsoft's substantial AI expenditures, particularly in cloud infrastructure and OpenAI partnerships, face scrutiny as revenue growth lags behind investment outlays.
