By Rich Smith, The Motley Fool
Publication Date: 2026-08-17 19:48:00
Investment banker Morgan Stanley sounded an alarm on the artificial intelligence industry this morning — and took a chunk out of Microsoft‘s (NASDAQ: MSFT) market cap when it did it. AI revenue isn’t rising as fast as AI cost, and Microsoft could end up poorer as a result.
Shares of the mega-tech hyperscaler stock are down 3.2% through 1:45 p.m. ET.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why Microsoft investors might worry
Hyperscalers as a whole are expected to grow their capital spending 57% this year, relative to 2025, says Morgan Stanley. Microsoft, in particular, plans to spend $190 billion as it builds out its AI infrastructure.
This much was already known. …
