Microsoft: Stock to Avoid or Once-in-a-Decade Buying Opportunity?

Since peaking last fall, Microsoft (NASDAQ: MSFT) shares are down more than 25%. The sell-off accelerated in 2026, as fears that generative artificial intelligence (AI) software would render Microsoft's expensive enterprise software suite obsolete led analysts to rerate how much Microsoft's current earnings are actually worth. On top of that, Microsoft's second-quarter earnings report in January showed accelerating spending on AI data centers without a corresponding acceleration in revenue from its Azure c ...