Microsoft Stock Drops 15% in 2026 as AI Spending Faces Investor Scrutiny

Microsoft’s Stock (NASDAQ: MSFT) slowdown is raising fresh questions on Wall Street as shares slide 15% year-to-date and nearly 12% in the past month.

Microsoft Stock Down 15% in 2026

Microsoft shares are trading around $401, roughly 25% below their 52-week high of $555.45. The pullback reflects mounting investor scrutiny over the company’s aggressive AI spending strategy.

Despite the downturn, CNBC’s Jim Cramer remains optimistic, predicting Microsoft could stage a comeback that “blows us away.”

AI Spending Under the Microscope

Investors have grown cautious about Microsoft’s pace of AI monetization. The company plans to invest up to $50 billion in AI infrastructure expansion, a figure that underscores its long-term commitment.

Markets now want proof that these investments will translate into meaningful revenue acceleration.

The concern centers largely on Microsoft Copilot. Reports suggest that only about 3.3% of Microsoft 365 users currently pay for Copilot, raising doubts about adoption speed relative to expectations.

With AI positioned as Microsoft’s next growth engine, slower-than-anticipated uptake has cooled sentiment.

Copilot Not the Final AI Vision?

Cramer suggested that Copilot may represent only the first phase of Microsoft’s broader AI roadmap.

Microsoft continues developing in-house AI silicon, such as the Maia 200 accelerator, while securing advanced memory supply like SK Hynix’s HBM3e to support its data center ambitions. The company has also signaled efforts to reduce reliance on OpenAI as it pursues greater self-sufficiency.

This strategic pivot could allow Microsoft to control more of its AI stack, from hardware to enterprise software deployment.

Waiting for a Turning Point

Microsoft’s stock weakness suggests investors expect a clearer monetization path. Azure growth trends and enterprise AI subscription numbers will likely shape near-term sentiment.

At current levels, expectations have cooled significantly. That lower bar could position Microsoft for a positive surprise if a new AI-driven revenue model gains traction across Windows, Office, Azure, and enterprise platforms.

For now, the market waits for signs that heavy AI spending will translate into measurable returns.

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