Microsoft stock plunges as Wall Street questions AI investments

Al JazeeraEN 2 min read 100% complete by Andy HirschfeldJanuary 29, 2026 at 10:37 PM

AI Summary

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On January 29, 2026, Microsoft stock plummeted 12%, wiping out approximately $400 billion in valuation, due to concerns about the company's AI investments and a broader software industry sell-off. The drop followed a report indicating slowing growth for Microsoft's Azure cloud computing service. Increased capital expenditures, reaching $37.5 billion in the second quarter, also contributed to investor unease. Wall Street analysts expressed concern over the high capital spending and the pace of AI monetization. Additionally, worries arose regarding Microsoft's investment in OpenAI, which accounts for a significant portion of its cloud backlog, as investors fear potential losses if the startup's momentum falters.

Key Entities & Roles

Key Player Opposition Context

Venezuela 30% Wedbush Securities 30% United States ×230% Iran 30% Mexico 30% Redmond, Washington ×240% Dan Ives 40% Wall Street 50% Azure ×260% OpenAI ×370% Microsoft ×690%

Keywords

microsoft stock 90% artificial intelligence 80% cloud computing 70% openai 70% azure 60% investment 60% growth slowdown 50% capital expenditures 50% valuation 40%