Microsoft is rated Strong Buy, trading at a 21.88x trailing P/E, its lowest since 2018, despite Azure growing 40% and a $627B commercial backlog supporting aggressive $190B CapEx. About 25% of this backlog converts within 12 months, providing multi-year revenue visibility. A significant portion of the backlog is tied to OpenAI, which introduces earnings volatility as Microsoft absorbs some of OpenAI's losses. Management expects Azure growth in Q4 to exceed consensus, with margin compression due to rapid expansion, and anticipates new capacity to pay off by the end of 2026.
Microsoft CEO Satya Nadella acknowledged that AI competition is concentrated and models should be more affordable, signaling a shift in Microsoft's AI strategy. While Microsoft invested in AI infrastructure via Azure and partnerships with OpenAI and ...
Engram, an 8-month-old AI startup, raised $98 million to develop models that use up to 100 times fewer tokens, reducing AI costs while maintaining performance. The company’s technology focuses on recalling organization-specific workflows to deliver s...
Microsoft's stock has dropped about 22.2% year-to-date in 2026, with a $1,000 investment now worth around $778. The decline is driven by investor worries over the company's aggressive $190 billion AI investment plans and doubts about quick returns fr...
Oracle reduced its workforce by nearly 13%, cutting 21,000 jobs to 141,000 employees as of May 2026, citing AI technology deployment as a key factor. The company spent $1.8 billion on restructuring costs, a significant increase from the previous year...
Microsoft and Chevron announced a plan to develop a 2.67-gigawatt natural gas power plant in West Texas to supply electricity for Microsoft's AI and cloud data centers. The plant will use large turbines from GE Vernova and Solar Turbines, with Micros...
