Microsoft Stock Falls as AI Bubble Talk Intensifies
TL;DR Summary
Microsoft shares dropped about 12% as investors weigh AI investments and warnings from University of Michigan professor Erik Gordon that AI could be in a large bubble. Gordon says the bubble may persist for months despite ongoing cash inflows, while Microsoft’s cloud business shines even as gaming revenue falls about 9% year over year. Analysts remain bullish overall, with a Strong Buy consensus and an average target near $605, implying roughly 42% upside.
- “Warning of the Burst to Come”: Microsoft Stock (NASDAQ:MSFT) Slides, Analyst Calls AI a “Planet-Sized Bubble” TipRanks
- Is the AI Bubble Going to Pop in 2026? Here's Your Backup Plan. Yahoo Finance
- AI boom will produce victors and carnage, tech boss warns BBC
- The AI Bubble Is Getting Closer to Popping Bloomberg.com
- AI is a planet-sized bubble, Microsoft's stock drop is a warning of what's ahead: Gordon Business Insider
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