Microsoft's $357 Billion Rout: Second-Worst Ever After AI Spending Doubts
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Firstpost•30-01-2026, 13:59
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.
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