By Fahad Saleem
Publication Date: 2026-06-12 13:57:00
We just covered Harvard University Stock Portfolio 2026: Top 10 Picks. Microsoft (NASDAQ:MSFT) ranks #2 (see Harvard University Stock Portfolio 2026: Top 5 Picks).
Harvard’s Stake: $189,921,271
Microsoft (NASDAQ:MSFT) is down about 15% so far this year. The biggest overhang is the impact of AI on software.
The key fear is straightforward. If AI tools like Claude, ChatGPT, and others can do everything, why would companies still pay for Microsoft software? That is the question weighing on the stock.
There is a second fear, too. Microsoft (NASDAQ:MSFT) may need to integrate powerful external AI models into its products. Every time a user interacts with Copilot, Microsoft may have to pay for tokens consumed from AI providers. This cuts into margins. The more AI is used, the more it costs Microsoft.
However, there are strong reasons to believe Microsoft (NASDAQ:MSFT) can fight back. The company has unmatched penetration in the…
