Microsoft sinks, chipmakers climb as AI rally faces divide

Microsoft shares fell 2% before the bell on Wednesday as growth in the tech giant’s cloud business slowed, while Nvidia and other chipmakers rallied following a bright quarterly report from Advanced Micro Devices.

The gains in chipmakers and losses in their biggest customers underscored a divide in the AI landscape, with investors questioning if Wall Street’s AI rally may have become overextended.

Microsoft is on track to shed more than $70 billion in its market capitalization, if losses hold.