Microsoft Stock Slump Contrasts with Bullish IT Spending Forecast
Microsoft shares tumbled 2.4% to $459.53, marking a seven-month low amid broader skepticism about software valuations and AI investments. The stock has now declined 8% over three months, underperforming the tech sector.
KeyBanc's latest IT reseller survey reveals a coming rebound in enterprise spending. Customer budgets are projected to grow 5.3% in 2026, accelerating from 4.6% growth in 2025. The data suggests particular strength in cloud computing, with 30% of respondents anticipating faster public cloud spending growth—a 17-point quarterly increase.
Microsoft stands to benefit through its Azure cloud platform and Copilot AI products. The company also secured a 12-year carbon removal agreement with Indigo Carbon, purchasing 2.85 million soil carbon credits. KeyBanc maintains its Overweight rating and $630 price target, implying 37% upside from current levels.
