New York, Feb 26, 2026, 16:42 EST — After-hours
Microsoft (MSFT) shares closed up about 0.3% at $401.72 on Thursday, after trading between $398.79 and $407.47. Investors weighed a reported antitrust raid in Japan alongside a broader wobble in AI-linked tech. 1
The timing matters. Markets have grown jumpy about whether Big Tech will earn enough on the billions going into data centers and AI gear, and Microsoft has been a weak spot. The stock is down nearly 20% so far this year and has been the biggest drag on the S&P 500, according to S&P Dow Jones Indices. 2
That sensitivity showed up in Thursday’s tape. U.S. stocks ended lower after Nvidia’s results failed to extend the AI rally, with the Nasdaq down 1.18% and the S&P 500 off 0.53%, preliminary data showed. “It feels like an Nvidia hangover that’s specific to the AI space,” said Michael Green, chief strategist at Simplify Asset Management. 3
In Tokyo, Japan’s Fair Trade Commission raided Microsoft Japan’s offices on Wednesday as part of an investigation into whether it improperly restricted Azure customers from using rival cloud services, a source with direct knowledge said. Microsoft Japan is “fully cooperating” with the regulator’s requests, a spokesperson said; the commission declined to comment. 4
The market’s bigger question is how durable the AI trade is at current prices. “People are getting concerned about lofty valuations,” said Thomas Plumb, chief executive and portfolio manager at Plumb Funds. “It’s an increasingly cloudy future for AI,” said James St. Aubin, chief investment officer at Ocean Park Asset Management. 5
Washington is also moving closer to the cost debate that sits behind AI buildouts. The White House said it will host Microsoft, Amazon and others on March 4 to formalize a “Rate Payer Protection Pledge” aimed at shielding consumers from power-cost increases tied to data centers. “We appreciate the Administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers,” said Brad Smith, Microsoft’s vice chair and president; Harvard’s Ari Peskoe called the pledge “meaningless until we see utilities file contracts.” 6
Power is now part of the equity story. A Reuters Breakingviews column warned U.S. grid bottlenecks could collide with AI spending plans by hyperscalers — the largest cloud operators — as they ramp data-center demand. 7
Money is still chasing the same prize, and the competitive lines keep shifting. Reuters reported Amazon’s proposed investment in Microsoft-backed OpenAI could hinge on whether the startup hits an artificial general intelligence milestone — “AGI,” shorthand for human-level AI — or moves toward an IPO. 8
But the Japan probe is a reminder that regulatory friction can land fast. If authorities push Microsoft to change cloud contract terms or business practices, Azure’s ability to lock in customers could weaken just as investors are policing margins, capex and growth assumptions.
Next up, traders look to Friday’s U.S. producer price index — a read on wholesale inflation — due at 8:30 a.m. EST, and then to the March 4 White House meeting for clues on how much of the AI power bill companies may be forced to carry. 9
