• 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

Kraken Rolls Out Commission-Free Stock Trading

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

  • Religious slaughter in Syria shows need for US, Europe to ‘keep a close eye’ on Islamist regime: Greek FM

    March 10, 2025
  • Frustration at Elon Musk spills over after closed-door House GOP meeting: ‘Fed to the wolves’

    February 25, 2025
  • SpaceX Stock: Tesla and SpaceX are Collaborating

    August 14, 2024
  • General involved in Afghanistan withdrawal has promotion confirmed by Senate

    December 3, 2024
  • Biden finalizes crackdown on US military tech investments in China with one week to lame duck session

    October 31, 2024

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

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

    July 19, 2024
  • 3

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

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

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

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,602)
  • Investing (634)
  • Stock (867)

Latest Posts

  • MARK HALPERIN: 5 truths Republicans and Democrats should know to be ready to accept the election results

    October 24, 2024
  • GOP Senator Ron Johnson says he’s ‘trying to force reality’ on DC

    June 13, 2025
  • Ontario cancels internet deal with Musk’s Starlink as part of U.S. tariff fight

    July 31, 2025

Recent Posts

  • Dogecoin and Shiba Inu: Dogecoin has slowed its recovery

    August 14, 2024
  • Energy groups celebrate Trump’s latest move to unleash Alaska drilling

    June 4, 2025
  • As Iran talks get underway, expert raises alarm over lack of plan to secure nuclear material

    June 20, 2025

Editor’s Pick

  • Hunter Biden drops lawsuit against IRS, which whistleblowers say ‘tells you everything you need to know’

    May 1, 2025
  • Trump promises ‘hell to pay’ in Middle East if hostages are not released before he takes office

    December 2, 2024
  • Impeachment threat hits judge who blocked Trump federal funding freeze

    February 13, 2025
  • 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