New York, Feb 22, 2026, 10:07 (ET) — Market closed
- Microsoft shares slipped roughly 0.3% on Friday, ending the session at $397.23.
- Microsoft’s longtime gaming boss Phil Spencer is set to retire, with Asha Sharma, an internal hire, stepping in to lead the division.
- Nvidia’s earnings on Wednesday are in focus, with traders looking for signals on artificial intelligence appetite and how heavily the tech giants plan to spend.
Microsoft (MSFT.O) heads into the week with investors watching the mounting price tag for artificial intelligence. OpenAI, backed by Microsoft, is aiming for around $600 billion in total compute spending through 2030—chips and data centers for training and running AI—according to a source familiar with the plans who spoke to Reuters. That same source said OpenAI generated $13 billion in revenue against $8 billion in expenses for 2025. As for Microsoft, shares slipped 0.3% on Friday to close at $397.23.
For this stock, investors keep circling back to a single question: Just how much longer will Microsoft need to pour money into AI to stay out front—and when will that spending finally start to show up in margins and growth?
Nvidia reports on Wednesday, Feb. 25, with CEO Jensen Huang expected to give fresh signals on data-center spend by the major cloud players. Meanwhile, the market is still parsing the U.S. Supreme Court’s Friday decision overturning President Donald Trump’s tariffs—fuel for speculation ahead of Trump’s State of the Union set for Tuesday, Feb. 24. Investors want clarity on trade policy and any talk of refunds. “It’s hard for Nvidia to surprise when everyone expects it to surprise,” said Marta Norton, chief investment strategist at Empower. Reuters
After 38 years at Microsoft, gaming chief Phil Spencer is stepping down, the company announced Friday. He’ll continue as an adviser through the summer. Microsoft tapped Asha Sharma, a company veteran, to take over the gaming division, which has been wrestling with tariff-related cost hikes and shaky consumer demand. Gaming revenue slid about 9.5% in the December quarter following Microsoft’s $69 billion acquisition of Activision Blizzard in 2023, while PlayStation, from Sony, still holds its spot as the primary console competitor. “As AI becomes a bigger element in game development, Microsoft needs a new generation of leaders to manage through this transition,” said D.A. Davidson analyst Gil Luria. Reuters
Microsoft faces the same equation with OpenAI: massive AI expansion, and the question of who foots the bill first. Investors haven’t hesitated to react if expenses outpace what’s coming in from cloud or AI software.
The stock’s been under a cloud since January’s numbers. Microsoft poured a record sum into artificial intelligence that quarter, with Azure revenue jumping 39% in the October-December stretch—just eking past the Visible Alpha consensus. Eric Clark, who manages the LOGO ETF, pointed to swelling costs: “revenues are up 17% and the cost of revenues are up 19%.” The shares dropped 6.5% in after-hours once the report hit. Reuters
Investors are watching to see if Microsoft can maintain its pace in cloud growth as it pours money into new data centers. The other question: Can the company push more AI tools without sacrificing pricing power?
A stumble from Nvidia on its forecast, or a new tariff move, could easily rattle the AI space and pull MSFT lower. In that case, Microsoft’s ambitious spending plans suddenly take center stage—and become more vulnerable.
Markets come back online Monday, and the immediate question: will those late-Friday headlines spark another wave of selling, or lure in bargain hunters? Soon after, eyes will turn to Nvidia on Feb. 25. Then it’s enterprise software earnings and whatever policy cues emerge out of Washington.
