Microsoft's $357 Billion Rout: Second-Worst Ever After AI Spending Doubts

• Microsoft experienced a $357 billion market value wipeout, the second-largest single-day loss in Wall Street history.
• The stock plunged 10%, its sharpest fall since March 2020, due to record capital expenditure and slowed Azure growth.
• Nvidia's $593 billion loss last year, triggered by DeepSeek's low-cost AI model, remains the largest one-day rout.
• Microsoft's aggressive AI spending, including a 66% surge in capital expenditure to $37.5 billion, is under scrutiny.
• Investors are questioning the return on investment for massive AI spending by Big Tech, demanding clearer evidence of profitability.

Why It Matters: Microsoft's massive market value drop highlights investor skepticism over Big Tech's AI spending and profitability.