Microsoft Stock Has Grown Roughly 15-Fold Since Satya Nadella Became CEO in 2014, a 27% Annual Growth Rate That Ended 14 Years of Near-Zero Growth. Can That Pace Continue Under Heavy AI Spending? | The Motley Fool

Few can dispute the success that Satya Nadella has had as CEO of Microsoft (MSFT +2.38%). Since he took the top job at the company in February 2014, its stock price has increased by about 1,360%. Factor in the value of reinvested dividends during that time, and Microsoft’s total return was about 1,670%.

Nonetheless, thanks to the massive capital expenditures required to stay competitive in the AI and cloud computing realms, its near-term outlook seems more unpredictable. Should investors expect lower returns in the years to come, or could that heavy spending maintain or accelerate this cloud stock‘s gains?

Microsoft and AI

One need only look at the trend in its capex figures to become concerned about this issue. In Microsoft’s fiscal 2026 (which ended June 30), its capex was $116 billion, well above the $65 billion in the prior fiscal year or the $44 billion in fiscal 2024.

This rapidly climbing spending is not unique to Microsoft, which has the…