Microsoft’s AI investments are under scrutiny as its stock has fallen nearly 10% since peaking in July 2024, underperforming the Nasdaq 100 Index.

The company plans to invest billions in data centers this fiscal year to support its AI initiatives but has faced challenges, including slower growth in Azure cloud services.

Rivals like Google Gemini and ChatGPT are gaining more consumer traction, with only 13% of survey respondents using Microsoft’s Copilot compared to 25% for Google’s offering.

In response, Microsoft rebranded its chatbot and raised prices for Office applications with AI tools.

Despite these challenges, over 90% of analysts recommend buying Microsoft stock, citing its strong position in AI infrastructure and application development.