Oppenheimer Downgrades Microsoft (MSFT) Rating Due to AI Concerns

Investment bank Oppenheimer has downgraded its rating on Microsoft (MSFT, Financial) from "Outperform" to "Perform," citing overly optimistic expectations for future revenue and earnings. The downgrade primarily stems from anticipated significant losses by Microsoft's AI partner, OpenAI, and the slower-than-expected adoption of AI technology by enterprises, potentially leading to lower-than-expected related revenue.Analyst Timothy Horan highlighted concerns that OpenAI, in which Microsoft holds a 49% stake, ...