Microsoft Stock (MSFT) Buckles under AI Worries, But Crowd Wisdom Has a Catch

FomoAnxiety · 2026-03-27T18:56:48+00:00

Microsoft's shares are approaching a one-year low, down 26% this year amid AI concerns, but investor sentiment remains positive, seeing more portfolio additions compared to peers. Analysts maintain a Strong Buy rating, predicting significant upside.

FomoAnxiety

2026-03-27 18:56:48

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Microsoft’s (MSFT) shares continued to approach a one-year low on Friday afternoon and are set for their worst quarter since 2008. However, even as worries have been mounting over the tech giant’s AI capital expenditure, future Azure growth, and Copilot adoption, TipRanks’ Crowd Wisdom tool shows some relief.

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Why Is Microsoft Under Selling Pressure?

Since the start of the year, Microsoft’s shares have lost about 26% of their value, even as jitters over AI disruption from leading startups OpenAI and Anthropic have slammed the valuations of software stocks.

This has left Microsoft’s shares as the weakest performer of the mega-cap Magnificent Seven stock group.

Are Investors Buying the Dip?

Nonetheless, based on the activities of over 857,000 investors tracked by TipRanks, Microsoft has seen more portfolio additions over the last seven days and the last month compared to its Magnificent Seven peers. TipRanks’ Crowd Wisdom tool also shows that investors have a _positive _sentiment on MSFT based on their activities in the recent quarter.

Microsoft’s shares currently sit in 11.7% of all portfolios tracked on TipRanks and have seen 0.4% additions over the last seven days and 3.4% over the past month. This compares more favorably to metrics for chipmaking giant Nvidia (NVDA), which is the world’s most valuable company: 0.1% and 2.9% additions, respectively.

The Redmond, Washington-based company’s metric also beats those of its direct rivals Alphabet (GOOGL) and Amazon (AMZN), both of which compete with Microsoft in cloud infrastructure. In particular, Alphabet competes in the area of AI development and enterprise productivity software.

Amazon has been expunged from 0.2% of portfolios over the past week and has only been added to 1.4% over the last month. Alphabet’s numbers are much better: 0.1% and 1.8% additions, respectively.

Is Microsoft a Buy or Sell Now?

Across Wall Street, analysts remain highly bullish on Microsoft’s shares and have a Strong Buy rating on the stock. This is based on 33 Buys and three Holds issued over the past three months.

In addition, the average MSFT price target of $583.68 indicates 62% upside.

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