New York, January 27, 2026, 09:32 (EST) — Regular session
- Microsoft shares gained roughly 1% in early trading as investors gear up for the fiscal Q2 earnings report due Jan. 28
- Attention shifts to Azure’s expansion, AI investment, and capacity following Microsoft’s reveal of its Maia 200 in-house AI chip
- Markets are navigating a packed earnings schedule alongside a Federal Reserve meeting poised to impact major growth stocks
Microsoft shares edged up roughly 0.9% to $470.28 in early U.S. trade Tuesday, as investors stayed cautious yet engaged ahead of a packed week of key events.
Microsoft is set to release its fiscal second-quarter earnings on Wednesday, with a conference call scheduled later the same day. Investors usually watch these events closely for updates on cloud growth and spending strategies. 1
This matters because Microsoft is right at the heart of the market’s AI play: heavy spending on chips and data centers, while investors demand clearer returns and steadier guidance.
Microsoft and Meta report earnings on Wednesday, kicking off a key stretch for mega-caps that have fueled much of the market rally. Investors are zeroed in on Azure, Microsoft’s cloud unit, after Reuters cited LSEG forecasts of 38.8% growth this quarter — a dip from last quarter’s 40% surge. Microsoft has also flagged AI capacity limits lasting through June. “The first-mover advantage doesn’t always win the marathon,” said David Wagner, head of equities at Aptus Capital Advisors. CEO Satya Nadella added a cautionary note, saying AI’s benefits must be “much more evenly spread” for it to avoid becoming a bubble. 2
Microsoft reported results after unveiling the second generation of its AI chip, the “Maia 200.” The company said the chip is going live this week in an Iowa data center, with a second site planned for Arizona. To challenge Nvidia’s longstanding edge with its CUDA developer software, Microsoft plans to pair Maia 200 with new tools — including the open-source Triton. 3
For investors, Microsoft’s move to develop chips internally is as much about cutting costs and gaining control as it is about boosting performance. Success means relying less on external suppliers and tailoring hardware specifically for its AI services. But the rollout brings its own execution risks.
Macro factors still weigh in, even on a day focused on Microsoft. The Federal Reserve kicks off a two-day policy meeting Tuesday. Charlie Ripley, senior investment strategist at Allianz Investment Management, told Reuters it’s “an earnings story rather than a multiples story” that will drive markets. 4
The downside scenario is clear. A weaker Azure forecast, higher-than-anticipated AI expenses, or evidence that capacity constraints are dampening demand could pressure the shares. This comes after months of discussion about whether Big Tech’s AI investments are outpacing short-term gains.
Wednesday’s earnings will draw attention to Azure growth, AI capacity updates, and capital expenditures. Investors are also looking for clues on whether the company’s in-house chip and software efforts can lead to more stable margins down the line. The call kicks off at 2:30 p.m. PT.
