Should You Buy the Dip in Microsoft Stock? | The Motley Fool

Should You Buy the Dip in Microsoft Stock? | The Motley Fool

By Adam Spatacco
Publication Date: 2026-02-15 12:30:00

Microsoft stock has plummeted by 16% since the company reported earnings in late January.

A little more than three years ago, Microsoft (MSFT 0.13%) helped kick off the artificial intelligence (AI) revolution after the company invested billions into ChatGPT developer OpenAI. Since then, the Windows maker has swiftly integrated AI throughout its massive ecosystem — from cloud computing to data analytics, software coding, and more.

Despite Microsoft being one of the most influential leaders of the AI boom, investors have been punishing its stock as of late — with shares plummeting 16% since the company reported earnings on Jan. 28. Let’s dive into the factors plaguing Microsoft stock right now and assess if the ongoing sell-off is actually an opportunity for smart investors to buy the dip.

Image source: Getty Images.

Why is Microsoft stock dropping?

One of the primary use cases for AI is how hyperscalers integrate the technology into their cloud platforms. While Amazon Web…