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. 1
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. 2
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. 3
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. 4
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. 5
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. 6
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. 4
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. 7
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.
