By Daniel Sparks, The Motley Fool
Publication Date: 2026-03-19 20:23:00
Shares of Microsoft (NASDAQ: MSFT) have been slammed so far in 2026. As of this writing, the stock is down about 19% year to date — a decline far worse than the S&P 500‘s 3% pullback.
This sell-off comes even as the company continues to post impressive top- and bottom-line growth.
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So why did shares fall?
The answer likely comes down to the staggering cost of the artificial intelligence (AI) arms race and the risks this race introduces. Even though Microsoft’s top line is compounding at an enviable rate, the massive investments required to support this growth are elevating the company’s cost structure.
Microsoft’s second-quarter results for fiscal 2026 showed a business firing on all cylinders.
Total revenue…
