How fast is Microsoft's AI business growing?

Copilot has reached a $37 billion（約5.9兆円） annual run rate and is growing at a 123% pace. Azure, which hosts AI model training and deployment, grew 40% in the third quarter of fiscal year 2026 ending March 31.

Why has Microsoft's stock fallen so much while the company performs well?

The article does not explicitly explain the reason for the disconnect. It states that the market has heavily sold off Microsoft shares despite the company's strong business performance with AI products and cloud services, describing the situation as a potential opportunity to buy on the dip.

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Microsoft Stock Falls 35%, Attracting Smart Investors at Decade Lows

Yahoo Finance AI10h ago4 min read

Key takeaway

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.

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3 Key Points

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.

FAQ

How fast is Microsoft's AI business growing?: Copilot has reached a $37 billion（約5.9兆円） annual run rate and is growing at a 123% pace. Azure, which hosts AI model training and deployment, grew 40% in the third quarter of fiscal year 2026 ending March 31.
Why has Microsoft's stock fallen so much while the company performs well?: The article does not explicitly explain the reason for the disconnect. It states that the market has heavily sold off Microsoft shares despite the company's strong business performance with AI products and cloud services, describing the situation as a potential opportunity to buy on the dip.

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