Microsoft’s stock has been one of the most reliable in tech. Investors have stayed happy with the company’s margins and its reinvestment levels back into its cloud business, closely watching Azure’s performance as a key indicator of growth and sustained strength.
Wednesday, Microsoft shares slipped about 3% afterhours as the tech giant said it is seeing more demand for its cloud computing and AI services than it can keep up with, a challenge that is supercharging the company’s income.
Some investors have cautioned that the tech industry’s enormous spending on AI infrastructure is creating a bubble. Many deals surround one company: OpenAI, which has signed multibillion-dollar contracts with cloud and chip providers to fuel its growth.