• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Economy

Microsoft Stock: $10B AI Gamble Stalls After 10% Surge

by October 8, 2024
written by October 8, 2024

Microsoft’s $10B AI Bet: Stock Up 10%

At the beginning of the year 2024, there was a rapid rise in Microsoft’s stock price after the technology company invested $10 billion in OpenAI, a revolutionary company operating in the field of artificial intelligence (AI). The investment was based on OpenAI’s valuation and was meant to help Microsoft uplift its position in the increasingly dynamic AI market. Microsoft aimed to improve its ranking by offering innovative solutions, and thus, its Azure cloud services would be benefited to compete with the leader Amazon’s AWS in the market.

First off, Microsoft stock’s value visibly grew. Therefore, the company has been able to stay ahead of the overall market, at least during the initial half of the year. But by 2024, it began to underperform, as it rose by only 10%, which is small versus the broader market’s increase of 20%. The question is: why hasn’t Microsoft stock performed well despite its substantial AI investment?

Rising Competition: Microsoft’s $10B AI Bet Faces Investor Doubts

The idea that Microsoft’s $10 billion investment in OpenAI may have been premature has been entertained by an increasing number of investors. Instead of Microsoft’s original assumption that it would be the leader in the AI space and, therefore, more competitive, other companies like Alphabet and Amazon seem to be outpacing it. The latter example involves the displaying and modifying of data, such as the release of new sales reports or the reproduction of media files through Gemini AI’s link to the search engine results.

Amazon and Apple have also added AI characteristics to their iOS and AWS services, respectively. With these transformations, the risk exists that Microsoft’s head start in AI may be diminishing or even that it never existed.

In addition, the AI market’s low entry barriers—where companies with deep pockets can easily enter the space—raise questions about whether the investment Microsoft has made in these technologies will deliver the expected returns. This perceived risk is what is causing Microsoft’s share price to plummet, as investors fear the AI feature will only reflect positively upon the company several years from now.

Microsoft Stock Chart Analysis

MSFT/USD Stock Chart

We’ve been closely watching Microsoft Corp. (MSFT) shares, and the recent price action indicates a downward trend that has been consistent over the last few days. The stock opened at $417.05, and climbed to a $417.60 maximum point. However, shortly after that, they fell back. Finally, the day ended with a $416.01 close, a 0.25% decrease or $1.06 less than the completion day allocated.

From the chart, we notice that MSFT has been unable to break the $420 level, and their resistance is very strong. Since October 2, there have been descending highs and lows, suggesting a bearish trend. Although there are some times when the market goes up, the general market sentiment looks bearish and gives no room for optimism as volumes weaken and buyers simply aren’t in the game.

In the pre-market, the stock fell to $414.45, indicating further downside pressure could ensue. In case MSFT breaks through the $414 level, we might be in for more cutbacks. Alternatively, if the stock stands at this level, we could expect a recovery back to the $418-$420 interval. As we go forward, It’s crucial to take earnings reports into account.

For potential investors, now might be a good time to watch out for a buying opportunity, in particular, with the likely positive behaviour of Microsoft in the area of AI and the market uncertainties. Stay updated with all the details and be ready to modify your portfolio as necessary!

The post Microsoft Stock: $10B AI Gamble Stalls After 10% Surge appeared first on FinanceBrokerage.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Libya’s Oil Production: Brent at $77.54. What About WTI? 
next post
ApeCoin and Akita Inu: Targets and Price Overview 

related articles

Oil Prices Rebound After Trump’s Criticism of Powell

April 22, 2025

Trump’s Fed Criticism Sparks Investor Concerns

April 22, 2025

Buy Bitcoin Under $100K Before The Next Bull...

April 22, 2025

BNB Price Surge Leads Crypto Gains as Bitcoin...

April 21, 2025

Fed’s Stagflation Warning Impacts Crypto Markets

April 21, 2025

Bitcoin Slips to $83.6K Amid Nvidia’s $5.5B Charge

April 21, 2025

Gold Price Surge Hits $3,385 Amid Trade Tensions

April 21, 2025

Bitcoin Rebounds to $83,404 Amid Renewed Investor Confidence

April 21, 2025

Memecoins, AI, and DeFi Tokens Lead Crypto Rebound

April 21, 2025

Bitcoin Nears $85K Amid Market Optimism

April 21, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • White House press secretary defends Trump’s firing of inspectors general

    January 28, 2025
  • National Cancer Institute spends $218M per year on grants for ‘underrepresented’ groups: source

    February 24, 2025
  • Bitcoin hits $76K, Dogecoin dips: Crypto prices surge on Trump victory

    November 7, 2024
  • Harris caught on hot mic admitting her campaign is struggling with male voters

    October 29, 2024
  • SEC charges Robinhood with securities violations; brokerage to pay $45 million penalty

    January 14, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • NVIDIA Stock: Why NVDA Could Soar Through 2025

    November 26, 2024
  • Howard Lutnick confirmed as Trump’s commerce secretary

    February 19, 2025
  • ‘Ideological balance’: Supreme Court’s conservative majority to stay no matter who wins election, experts say

    October 25, 2024

Recent Posts

  • GOP lawmakers pledge to investigate Biden’s last-minute pardons: ‘Call them all before Congress’

    January 20, 2025
  • FBI Deputy Director Bongino: Illegal alien criminals and child predators are next in ongoing crackdown

    May 11, 2025
  • JEPI Stock Price And Analysis

    September 17, 2024

Editor’s Pick

  • Netanyahu dismisses claims of imminent cease-fire deal during ‘Fox & Friends’ appearance

    September 5, 2024
  • Melania Trump questions ‘whether Jill’s concern was genuine’ following Trump assassination attempt

    November 13, 2024
  • The euro index recovers while the yen hits a new high

    August 5, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock