Microsoft (MSFT) Fell Due to Concerns About Its Relationship With OpenAI

Core Insights - Harbor Capital Appreciation Fund reported a return of 5.11% in Q3 2025, underperforming compared to the Russell 1000® Growth Index at 10.51% and the S&P 500 Index at 8.12% [1] - The fund primarily invests in U.S. companies with a market capitalization of at least $1 billion, focusing on equity securities [1] Fund Performance - U.S. equities showed strong performance in Q3 2025, driven by AI momentum and robust corporate earnings, with support from the Federal Reserve's interest rate cut [1] - The fund's top five holdings were highlighted as key investment picks for 2025 [1] Microsoft Corporation (NASDAQ:MSFT) - Microsoft Corporation's stock gained 11.08% over the last 52 weeks, closing at $488.02 per share with a market capitalization of $3.628 trillion on December 24, 2025 [2] - Concerns regarding Microsoft's relationship with OpenAI, particularly after the Oracle/OpenAI deal announcement, led to underperformance of its shares [3] - The fund's underweight position in Microsoft relative to the index positively contributed to its relative returns [3] - Microsoft reported revenue of $77.7 billion in Q1 FY 2026, reflecting an 18% increase, or 17% when adjusted for constant currency [3] - The fund suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Microsoft [3]