Microsoft stock edged higher on Friday even after a June that saw it fall more than 8%, one of its worst months in many years. Investors have balked at the company's plan to spend nearly $190 billion on AI this year, yet Q3 FY2026 sales still reached $82.9 billion. Experts point to a large order backlog as reason to expect further growth.
Microsoft shares held onto mild gains during Friday's US trading session, extending a modest bullish move from the previous session. The stock still dropped more than 8% in June, which the source describes as one of its worst months in many years.
AI spending drives the selloff
The main pressure on the stock comes from worries about how much Microsoft is spending on artificial intelligence. The company revealed a plan to spend nearly $190 billion on new data centers, GPUs, and other AI tools this year. That outlay weighs on results in the short term but is meant to help the company grow over the longer run.
The bill is already climbing. In the recent quarter Microsoft spent $37.5 billion on AI, 66% more than the same period a year earlier. Much of that jump came as memory chip prices rose while many companies competed for the same components.
The business keeps growing
Yet the underlying business stayed strong. Microsoft reported $82.9 billion in total sales for Q3 FY2026, with the cloud unit bringing in more than $54 billion, nearly 29% higher than a year earlier. Azure grew quickly as more than 80% of large US companies used the firm's AI services.
Profitability held up as well. Microsoft posted Non-GAAP earnings per share of $4.27, up 18% to 21% from last year, and operating income also increased. The company carries a large order backlog it cannot fill quickly because demand is so high.
Experts see an opening
Because of that gap between price and business, many experts think the current level is a good chance to buy, arguing the stock looks cheap against its strong results. Technical signs suggest it may be oversold. Satya Nadella says the spending will pay off over the long run because demand for AI is very high.
Source: FXLeaders
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