Microsoft's stock has dropped 35% from its peak and now trades at valuations unseen in a decade, despite the company reporting strong earnings growth of 23% and accelerating AI revenue.
Copilot, the company's AI productivity tool, has reached a $37 billion（約5.9兆円） annual run rate with 123% growth, while Azure's 40% quarterly growth demonstrates sustained demand for its cloud AI infrastructure.
High-profile investors like Bill Ackman have begun buying the dip, viewing the valuation disconnect as a buying opportunity.
What happened
Microsoft's stock has fallen 35% from its all-time high, reaching valuation levels not seen in a decade on earnings and cash flow metrics. The company's AI-focused Copilot tool has reached a $37 billion（約5.9兆円） annual run rate growing at a 123% pace, while its Azure cloud platform grew 40% in the third quarter of fiscal year 2026.
Why it matters
Despite strong business performance—including Copilot's growth and Azure's expansion as a platform for training AI models like OpenAI's—the market has sold off Microsoft shares heavily. This disconnect between the company's operational strength and stock price suggests the current valuation may offer a genuine opportunity for investors seeking exposure to proven AI revenue streams at lower entry points.
What to watch
Billionaire investor Bill Ackman took a $2 billion（約3200億円） position during the first calendar quarter, and the stock has since become cheaper than at any point in that period, according to the article.
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