Microsoft Shares Slide Despite Earnings Beat Amid OpenAI Exposure, Azure Capacity Concerns
Technology
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Moneycontrol•31-01-2026, 13:06
Microsoft Shares Slide Despite Earnings Beat Amid OpenAI Exposure, Azure Capacity Concerns
- •Microsoft's shares dropped over 6% after-hours despite better-than-expected Q2 results, driven by investor worries.
- •Concerns center on moderating Azure growth, rising capital expenditure, and significant exposure to OpenAI.
- •OpenAI now accounts for 45% of Microsoft's $625 billion remaining performance obligations, raising Wall Street eyebrows.
- •Analysts fear over-reliance on a single partner (OpenAI) for Azure demand increases execution risk, especially with AI infrastructure constraints.
- •CEO Satya Nadella and CFO Amy Hood addressed capacity allocation, emphasizing balancing OpenAI, first-party products, and other Azure customers amid tight GPU supply.
Why It Matters: Microsoft's stock fell due to investor concerns over OpenAI reliance and Azure capacity, despite strong earnings.
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