Microsoft Looks Like a “Table Pounder” After Dipping on AI Worries

1 week ago 7

Joey Frenette

Thu, December 18, 2025 astatine 9:10 AM CST 5 min read

Microsoft banal is down implicit 12% from caller highs amid AI spending concerns and contention from Google’s Gemini 3.0.
The institution denied reports of reduced AI income quotas pursuing an nonfiction from The Information.
Microsoft has its ain AI squad led by Mustafa Suleyman and tin trim OpenAI dependence done Azure and its MAI model.
A caller survey identified 1 azygous wont that doubled Americans’ status savings and moved status from dream, to reality. Read much here.

If you've been waiting for an accidental to prime up shares of Microsoft (NASDAQ:MSFT) connected the inexpensive amid wide AI and tech jitters, here's your chance. The banal has been beaten down successful caller months, present disconnected much than 12% from its caller all-time highs. And portion the inactive seemingly frothy 33.89 times trailing price-to-earnings (P/E) aggregate doesn't look to suggest Microsoft shares are a "table pounder," I bash deliberation that the premier hyperscaler remains 1 of the champion bets of the Magnificent Seven.

Of course, its adjacent ties to OpenAI utilized to beryllium a positive. Nowadays, it's a negative, with ChatGPT losing a spot of crushed successful the AI contention to the likes of Alphabet (NASDAQ:GOOG), which has seemingly caught up with the merchandise of its well-received Gemini 3.0 model.

But conscionable due to the fact that Google Gemini and the hardware moving down the scenes (Google TPUs) are having their moment, it does not mean we should commencement treating OpenAI arsenic a laggard. Is the AI innovator down ChatGPT a spot dense connected the debt, with much than a fistful of circular deals?

Sure, but conscionable due to the fact that we've got reminders of the net bubble and dot-com bust does not mean we're successful for an nonstop repeat. Of course, dense indebtedness loads and utmost spending mightiness beryllium a interest for many. And circular dealmaking successful the AI country makes things a tad trickier and possibly scarier for those with AI bubble fears.

However, I deliberation the large question is whether oregon not the AI efforts are going to wage off. If they do, leverage mightiness enactment retired heavy successful the AI titan's favour successful a big-time way. Of course, it's hard to archer however the AI frenzy ends, erstwhile it volition end, and if the symptom volition beryllium arsenic atrocious arsenic the dot-com bust. Either way, I deliberation investors mightiness privation to dainty Microsoft arsenic much than conscionable an OpenAI proxy.

At the extremity of the day, Microsoft has been making its ain investments to lessen its dependence connected ChatGPT. Even if a worst-case script happens and OpenAI runs into a spot of fiscal occupation astatine immoderate constituent down the roadworthy portion giving up much crushed to rival AI models, Microsoft tin spell its ain way.