Microsoft Faces Worst Quarter Since 2008 Amid AI Investment Pressure

• Microsoft's stock is heading for its worst quarter since the 2008 financial crisis, driven by AI investment concerns and rising competition.
• Share price declined by approximately 25% in Q1 2026, the largest drop among "Magnificent Seven" tech companies.
• Investors are questioning the return on Microsoft's rapidly increasing AI infrastructure spending, with Capex projected to reach $146 billion in 2026.
• Emerging AI companies like OpenAI and Anthropic pose a threat to Microsoft's traditional software business and cloud services.
• Microsoft's cloud business, Azure, shows a slight growth slowdown, and its AI product Copilot has not met popularity expectations.