By Daniel Sparks
Publication Date: 2026-03-13 05:59:00
Many software and technology stocks have taken a beating in early 2026. As investors reassess the massive capital expenditures required for artificial intelligence (AI) infrastructure, they are punishing companies that carry premium valuations and heavy investment cycles. Shares of Microsoft (MSFT 0.73%) have fallen about 17% year to date as of this writing. And Amazon (AMZN 1.52%) stock has also been slammed, declining more than 9% over the same period.
Interestingly, however, both companies’ quarterly updates this year showed impressive growth. And, if anything, AI seemed to be a tailwind for both businesses — not a headwind. So, is this a buying opportunity? And, if it is, which of the two stocks is a better buy?
Image source: Getty Images.
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