Microsoft will invest $146 billion in artificial intelligence, which is frightening investors and leading to a roughly 25% drop in stock prices.

Microsoft — potential “crisis” from AI

Windows Central portal, citing Bloomberg, reports that Microsoft risks posting its worst quarterly results since 2008 if it continues investing in artificial intelligence without the market reacting as expected.

Key figures for Q1 2026
Metric | Value | YoY change | Stock price
---|---|---|---
Stock decline | 25% | almost the same as in 2008 (27%) | —
AI infrastructure investment | ~$146 bn (2026) | $88 bn in 2025 | —

Despite the share drop, management sticks to its growth strategy and plans to double the infrastructure budget.

Q2 2026 report
* Revenue – $81.3 bn (+17% YoY)
* Operating profit – $38.3 bn (+21% YoY)

These results look solid, but investors are concerned about rising data‑center and AI technology costs.

Satya Nadella’s position
* Copilot – daily user base grew almost threefold.
* Key issue – low conversion: only 3.3% of Microsoft 365/Office 365 users pay for the service.

Thus the audience is growing, but not all translates into revenue.

Competitor impact
OpenAI and Anthropic are already developing AI agents that could displace traditional office suites.

Janus Henderson (Jonathan Cofsky) notes that customers can go directly to AI‑service providers, bypassing Microsoft products.

Long‑term view
* Allspring Global Investments (Jake Seltz) sees current concerns as an investment opportunity.
* A short‑term stock correction opens “potential” for patient investors, since the company’s intrinsic value remains high.

Conclusion
Microsoft continues to pour huge sums into AI, but rising expenses and low monetization of Copilot raise analysts’ worries. On the other hand, long‑term prospects remain attractive for investors willing to wait for market stabilization.