(Bloomberg) -- Microsoft Corp. is at the intersection of two troubling trends roiling the technology sector, which has the stock on track for its worst quarterly performance since the global financial crisis two decades ago.First, the software giant is doubling down on capital expenditures as Wall Street increasingly asks when investments in artificial intelligence infrastructure will produce more dramatic payoffs in revenue growth. And second, investors are selling software stocks over fears th
But calling them an “AI stock” is insane considering “AI” is not their core business or even a profitable part of their business.
I suspect it is because MSFT is overvalued at the moment and the overvalued part is AI hype. Now that the AI bubble is decreasing, we see it reflected in MSFT. They’re not pure AI stock, but some part of it is, so I think the speculation is apt. So, if you’re an AI bro and a bit of a pussy and not 100% behind it, you can back Microsoft since they have other income streams to fall onto. If you’re hardcore, you buy OpenAI and lose everything when it goes down.
I suspect it is because MSFT is overvalued at the moment and the overvalued part is AI hype. Now that the AI bubble is decreasing, we see it reflected in MSFT. They’re not pure AI stock, but some part of it is, so I think the speculation is apt. So, if you’re an AI bro and a bit of a pussy and not 100% behind it, you can back Microsoft since they have other income streams to fall onto. If you’re hardcore, you buy OpenAI and lose everything when it goes down.