Microsoft Corp (NASDAQ:MSFT) shares tumbled on Thursday, after the company outlined a major overseas AI infrastructure push that also spotlights the scale of near-term spending.
- Microsoft shares are retreating from recent levels. Why is MSFT stock dropping?
Microsoft Commits to $18 Billion In Australian AI Infrastructure
Microsoft committed A$25 billion (about $18 billion) to Australia through 2029 to expand AI infrastructure and cyber defense, including plans tied to training three million people. The announcement frames a multi-year buildout that can be strategically positive, but it also keeps investor focus on capex intensity and payback timelines.
Microsoft is also leaning into workforce enablement, after previously training 1,500 instructors and now aiming to launch no-cost AI literacy courses to "millions" via a North America Building Trades Unions partnership in plans tied to. The scale matters because it reinforces Microsoft's push to broaden AI adoption beyond white-collar users, which can support longer-run demand for Azure and Copilot.
Microsoft's Office ecosystem is facing fresh competitive noise after Elon Musk said plugins for Excel, Word and PowerPoint are "coming soon," following a Grok 4.3 demo that turned a dense neuroscience paper into a clean nine-slide deck "in minutes" in a weekend demo. Even if it's early, the headline risk can raise the bar for Microsoft 365 Copilot differentiation as investors scrutinize AI monetization alongside infrastructure spend.
The broader tape is mixed, with the S&P 500 down 0.1% while the Nasdaq is up 0.05%. Technology is down 0.7% and currently ranks 11 out of 11 sectors, and Microsoft is falling more than the group during regular trading.
Shares Trade Between Key Averages
Microsoft is sitting in the lower half of its 52-week range ($356.28 to $555.45), which keeps the longer-term recovery attempt from looking fully repaired. The stock is trading 7.9% above its 20-day simple moving average (SMA) and 3.1% below its 100-day SMA, a split that points to short-term strength but a still-challenged intermediate trend.
The relative strength index (RSI), a momentum gauge, is 73.82, which is in overbought territory and often lines up with choppier pullbacks. RSI at 73.82 means buyers have been in control lately, but it can also signal the move is getting stretched.
The death cross in January (50-day SMA below the 200-day SMA) remains an overhang, even as price has rebounded above the 20-day and 50-day averages. Over the last 12 months, the stock is up 11.43%, which shows gains are holding up, but not at the pace implied by prior highs.
- Key Resistance: $489.50 — a prior ceiling where rallies have struggled to keep traction.
- Key Support: $381.50 — an area where buyers have tended to show up on dips.
Earnings & Analyst Outlook
The countdown is on: Microsoft Corp is set to report earnings on April 29, 2026 (confirmed).
- EPS Estimate: $4.07 (Up from $3.46 YoY)
- Revenue Estimate: $81.40 Billion (Up from $70.07 Billion YoY)
- Valuation: P/E of 27.1x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $573.04. Recent analyst moves include:
- Guggenheim: Buy (Maintains Target to $586.00) (April 23)
- Citigroup: Buy (Lowers Target to $600.00) (April 22)
- TD Cowen: Buy (Lowers Target to $540.00) (April 16)
Shares Drop Slightly On Thursday
MSFT Stock Price Activity: Microsoft shares were down 4.09% at $415.23 at the time of publication on Thursday, according to Benzinga Pro data.
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