By Trefis Team
Publication Date: 2026-01-22 13:23:00
CHONGQING, CHINA – JANUARY 22: In this photo illustration, a smartphone displays the logo of Microsoft Corporation (NASDAQ: MSFT), a U.S.-based technology company best known for its software, cloud computing and artificial intelligence businesses, in front of a screen showing the company’s latest stock market chart on January 22, 2026, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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Microsoft stock has declined by 5% this week due to two converging factors. First, analysts are lowering price targets ahead of earnings reports, and second, investors are becoming hesitant about AI spending. The immediate reason for this change is evident—Wall Street is adjusting its expectations. However, the more profound concern is whether Microsoft’s substantial investments in AI infrastructure will yield returns in the near future.
How poor has Microsoft’s performance truly been?
To put it plainly: mediocre. A 3% return over the last twelve months compared to 14%…