By Marty Shtrubel
Publication Date: 2025-11-20 08:39:00
Microsoft (NASDAQ:MSFT) remains one of the key forces driving the AI revolution, but Rothschild & Co Redburn analyst Alex Haissl believes the stock now warrants a more cautious view. He argues that investors should move past the comforting idea that Gen-AI will follow the same trajectory as early cloud 1.0, a comparison he sees as increasingly off the mark.
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Essentially, Haissl’s analysis indicates that Gen-AI’s “underlying economics” aren’t nearly as strong as assumed: GPU deployments need about six times more capital to produce the same value as “cloud 1.0,” with risks “skewed to the downside.”
Microsoft, says Haissl, is still viewed as a major beneficiary of Gen-AI, while Azure continues to be a primary driver of growth. This has so far helped shift investor focus toward the strength of the cloud business, rather than potential Gen-AI-related challenges in Office 365.
According to Haissl, the stock now faces two main…
