New York, February 12, 2026, 10:09 EST — Regular session
- MSFT continues its pullback amid investor concerns over AI infrastructure expenses
- Microsoft is experimenting with cutting-edge power technologies to support its rapidly expanding data-center network
- Wall Street strategists contend the software selloff has gone too far given the near-term risks
Microsoft shares slipped roughly 0.6% Thursday morning, with investors zeroed in on the challenges of constructing and powering the data centers fueling the company’s AI ambitions.
This move was significant since Microsoft now stands as a benchmark for the broader “AI capex” theme — heavy upfront investments with returns expected down the line — and investors have swiftly pulled back when expenses seem persistent. That sensitivity has driven volatile daily swings since late January. Reuters
Timing is another factor. Since a few megacaps heavily influence the index, a stumble by Microsoft can quickly sour sentiment on software and cloud stocks, especially as investors weigh the next phase of rate moves.
By mid-morning, Microsoft’s stock stood at $401.83, slipping $2.54 from Wednesday’s close. During the session, shares fluctuated between $400.28 and $407.05. On Wednesday, the stock ended at $404.37, dropping 2.15%, per Yahoo Finance data.
A Reuters report this week revealed a new twist: Microsoft is looking into superconducting power lines for its data centers. The company claims this tech could let it cram more electricity into a smaller space. “The technology helps us scale power density without expanding our physical footprint,” said Husam Alissa, head of the Systems Technology Team at Microsoft’s CO+I CTO Office. Reuters
Big tech’s rush to electrify massive server farms is bumping up against a familiar hurdle — grid capacity. On Wednesday, AI firm Anthropic revealed plans to reduce the impact of data-center growth on consumer energy bills. Reuters pointed out these moves align with Microsoft’s recent push to shoulder power costs and collaborate with utilities to boost supply for its sites.
Some strategists now say software stocks have been sold off too aggressively for the next few months. JPMorgan’s Dubravko Lakos-Bujas and team argue the market is pricing in worst-case AI disruption scenarios that probably won’t unfold over the next three to six months. They singled out a group of “higher quality” software companies, including Microsoft. Over at Morgan Stanley, Katy Huberty described the valuation shifts as “sentiment-driven, not fundamental” in a separate note. Reuters
Microsoft supporters still face some uncertainties. The company hasn’t disclosed its budget for superconducting research or a timeline for large-scale cable deployment. The bigger issue — whether AI-driven infrastructure expenses will continue to outpace returns — has weighed heavily since the last earnings report.
Traders are gearing up for key macro data that could swiftly shift tech valuations. The U.S. Labor Department will release January’s Consumer Price Index on Friday, Feb. 13 at 8:30 a.m. ET, per the Bureau of Labor Statistics schedule.
No shock there—the rate path shifts once more. Microsoft, caught squarely in the AI spending debate, probably won’t stay quiet in the tape.
