Microsoft's stock dips on AI spending concerns
Business
Microsoft's stock dropped nearly 2.5% to $373.61, landing 21% below its January high, even though the company posted a solid 17% jump in revenue and a huge 60% boost in net income.
The catch? Investors are uneasy about how much Microsoft is pouring into artificial intelligence, with capital spending soaring to $37.5 billion and cloud profit margins slipping to 67%.
Bank of America remains bullish on Microsoft
Despite the dip, Bank of America isn't worried: it's sticking with its buy rating and a bold $500 price target for Microsoft.
Analysts say the company's strong lineup (think Azure and AI) puts it in a great spot for future growth, calling this drop a potential buying opportunity as Microsoft works to turn its big AI bets into real profits down the line.