Microsoft’s stock is cheaper than IBM’s for the first time in a decade. What that says about the AI trade.

As the market digests Big Tech’s ambitious artificial-intelligence spending plans for 2026, the relative cheapness of Microsoft’s stock underscores a new dichotomy in technology investing.

Microsoft’s stock

MSFT is now cheaper than IBM’s IBM, with the two trading at 23.0x and 23.7x forward earnings, respectively. Microsoft has been trading at a lower multiple than IBM since Jan. 29. Before this recent shift, the last time this had occurred was July 25, 2013, according to Dow Jones Market Data.