Microsoft Corp. (NASDAQ:MSFT): Investors May Be Chasing After A.I. Hype Rather Than Focusing on Current Fundamentals

 


Beware that just one week ago, UBS analysts warned of weakness in Microsoft's cloud business citing Azure is facing “steep growth deceleration.” To make matters worse, Gartner reported on Wed. that global PC shipments collapsed 28% in Q4.

The headline per Reuters, "Microsoft in talks to invest $10 bln in ChatGPT-owner OpenAI", sounds exciting but revenue generated from Microsoft 's A.I. bet could be years away before being recognized.

The downside risks for Microsoft stock in the current market conditions exist as the bottom of the channel for the stock is at ~ $170.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!



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