New York, February 24, 2026, 10:02 a.m. EST — Regular session
Microsoft Corp (MSFT.O) ticked 0.2% higher to $385.28 during Tuesday morning trading, clawing back a bit of ground after its previous drop left investors skittish. So far, shares have moved between $381.71 and $389.36.
Microsoft shares ended Monday at $384.47, losing $12.76, or 3.21%, Yahoo Finance data show. The slide renewed questions about how much investors will shell out for Big Tech’s AI ambitions — and how patient they’ll be for payoffs.
Bridgewater Associates jumped into the discussion Monday, projecting that Alphabet, Amazon, Meta, and Microsoft could together pour around $650 billion into AI infrastructure this year. In a letter to clients, co-CIO Greg Jensen flagged that “compute demand continues to significantly outpace supply,” but he also highlighted the risks that come with such hefty capital spending—money earmarked for data centers, servers, and chips isn’t immune to setbacks if things go wrong. Reuters
Trading stayed muted, with major indexes barely budging at the open. Investors took in Anthropic’s latest AI launches and digested the aftermath of Monday’s sharp losses, according to Reuters.
Nvidia’s quarterly results are looming on Wednesday, setting up a fresh test for investors. “This earnings in particular is important because people are so concerned about AI spending — whether we’re in a bubble,” Ivana Delevska, chief investment officer at Spear Invest, told Reuters. Reuters
Microsoft stands at the heart of the current spending wave, acting as a key cloud provider. For the company, rising AI demand usually means ramped-up hardware investments and expanding data centers. Its stock has seesawed since late January—results and unprecedented AI outlays put a spotlight back on expenses and cloud growth.
AI hardware rivalry is factoring into the market narrative, as major buyers push for better deals and more secure supply. According to Reuters, AMD landed Meta as a customer for its AI chips—a move that underscores how hyperscalers are seeking alternatives to Nvidia.
This setup isn’t one-way traffic. If Nvidia’s results or outlook cast doubt on AI demand, the fallout usually drags down the broader sector—Microsoft included. With Nvidia’s earnings in focus, traders are positioned for major volatility. Options pricing signals an expected move of about 6% in Nvidia shares post-report, according to Investopedia.
Microsoft investors don’t have to wait long for an update. CEO Satya Nadella is slated to speak at Morgan Stanley’s Technology, Media & Telecom Conference on March 4, with his remarks scheduled for 9:15 a.m. PT, per the company’s investor-relations events page.
