Microsoft shares have suffered their largest decline in more than five years, falling 10% this week after the company reported record spending on artificial intelligence alongside slowing growth in its key cloud unit.
The stock closed at $433.50 on Thursday, down from $481.63 at the end of the trading two days earlier, wiping about $357 billion off the company’s market value in one of the largest single-day losses on record outside the Covid-era sell-off.
Microsoft has been among the most aggressive US tech companies in adopting AI, investing billions in infrastructure and deepening its partnership with OpenAI. The company is embedding generative tools into Windows, Office, and Azure while cutting thousands of jobs as part of restructuring.
The selloff reflects growing investor skepticism over whether the vast sums being poured into AI by Big Tech will deliver meaningful returns, according to Bloomberg. Microsoft reported a 66% jump in capital spending to a record $37.5 billion in its latest quarter, while growth at its Azure cloud unit slowed from the previous quarter.
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