/Microsoft%20Corporation%20logo%20on%20phone-by%20rafapress%20via%20Shuterstock.jpg?ssl=1 "Microsoft Stock Is an AI Bargain That Investors Are Missing")
By Amit Singh
Publication Date: 2026-05-17 19:00:00
Microsoft Corporation logo on phone-by rafapress via Shuterstock
Despite dominating the cloud computing and artificial intelligence (AI) space, Microsoft (MSFT) stock has gone nowhere.
Over the past year, shares have fallen roughly 9.6%, lagging rivals such as Alphabet (GOOG) (GOOGL), whose stock has surged on AI enthusiasm, and Amazon (AMZN) , which has gained 28%.
Microsoft’s underperformance relative to peers suggests its AI strategy is becoming expensive.
Why Microsoft Stock Has Struggled?
Microsoft is spending aggressively to win the AI race. The company plans to spend nearly $190 billion on capital expenditures in 2026, including roughly $25 billion on rising component costs.
Those investments are pressuring margins and frustrating investors looking for faster, near-term returns.
At the same time, management expects only a modest acceleration in Azure (its cloud computing platform) growth in the near future, even as spending ramps higher. Ongoing supply…
