Investors Are Selling This AI Stock, but Is It Actually a Screaming Buy?

Core Viewpoint - Microsoft stock has declined nearly 20% in 2026, despite being a leader in the AI field, presenting a potential buying opportunity for investors [1][2]. Company Performance - Microsoft reported a 17% revenue growth companywide during Q2 of fiscal 2026, despite the stock experiencing a sell-off post-earnings [6]. - Azure, Microsoft's cloud computing platform, grew at a 39% year-over-year pace in Q2, indicating strong demand for its computing bandwidth [5]. Investment Strategy - Microsoft is taking a conservative approach to AI investments, spending $37.5 billion in Q2, which is significantly lower than competitors like Amazon and Alphabet [9]. - The current stock price presents a rare buying opportunity, as Microsoft hasn't been this cheap since the market-wide sell-off in 2023 [11][13]. Market Position - Microsoft is not creating its own generative AI model but is a significant investor in OpenAI, integrating its technology into its products while also offering other AI models through Azure [4]. - The market conditions are favorable for Microsoft, with no negative news impacting the stock, unlike the situation in 2023 [13].