By TradingView
Publication Date: 2026-10-06 18:35:00
Software and cloud computing firm Microsoft Corp. (MSFT, Financials) looks to have what many AI competitors want: the confidence of huge business clients.
That benefit has not led to the type of stock performance investors may hope for.
Microsoft has topped profit projections in six straight quarters, although its shares are still around where they were a year ago. One factor is the cost of developing for the AI surge. Capital spending is set at $116 billion and free cash flow was down 6%, the report says.
The payout might be in Microsoft’s backlog.
Commercial outstanding performance commitments jumped 84% to $678 billion, indicating that companies are investing heavily in Microsoft’s cloud and AI ecosystem.
Boards of directors might lean toward Microsoft because they know the company and have confidence in its governance, said Jim Cramer. His point is less about whose AI model is superior, and more about which supplier organizations are comfortable constructing a model around.
That…
