Microsoft stock stumbles; why and how AI may be to blame

Microsoft’s stock price has hit a snag in recent months, falling behind the broader tech market. This slowdown coincides with a cooling sentiment towards AI as a major stock market driver. According to a report in Bloomberg, Microsoft’s share price has only grown 1.3% in the past six months, compared to a nearly 10% gain for the Nasdaq 100. The stock is also 8% below its all-time high.
“There’s some AI fatigue when it comes to companies like Microsoft, given the incredible run they’ve had,” told Neville Javeri, senior fund manager at Allspring Global Investments, to Bloomberg.
Investors “need to see additional proof points about demand for AI products and services for the rally to hold,” he added.