Michael Burry Just Went Long on Microsoft. Is the Market Missing Something Big?

• Microsoft (MSFT) is down 13% year-to-date and trading 24% below its 52-week high, while generating recurring revenue from Azure and Office 365 with durable cash flow margins that exceed most tech peers. Billionaire investor Michael Burry recently disclosed a long position in Microsoft, citing the company’s high-margin software and cloud business with fortress-like fundamentals.

• Macro uncertainty and investor panic over AI spending returns have temporarily repriced Microsoft despite unchanged business quality, creating the type of fear-driven valuation reset that attracts contrarian investors like Burry.

• The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.

The market has spent much of the year rewarding caution and punishing complacency. After a long stretch where mega-cap tech felt untouchable, volatility has crept back in — driven by shifting interest-rate expectations, AI capex concerns, and investors rethinking just how…