By Subrat Patnaik
Publication Date: 2025-11-18 13:33:00
(Bloomberg) — The bull case for generative artificial intelligence is no longer clear and hyperscalers should be approached with caution, according to an analyst who downgraded two of Wall Street’s most-favored tech giants.
Microsoft (MSFT) Corp. and Amazon.com, Inc. (AMZN) saw their ratings cut to neutral from buy on Tuesday, as Rothschild & Co Redburn’s Alexander Haissl downgraded the stocks for the first time since initiating coverage in June 2022, according to data compiled by Bloomberg. Shares of both firms traded more than 1.5% lower in premarket.
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The industry’s “trust us – Gen-AI is just like early cloud 1.0” narrative looks “increasingly misplaced,” Haissl wrote in a note, stating that the underlying economics are “far weaker than assumed.”
Haissl’s downgrades follow a selloff in the tech-heavy Nasdaq 100, which has wiped out almost $1.8 trillion since a late-October peak to send the gauge down 5.1% in that…
