MSFT Under Pressure Amid AI Bubble Concerns

2 months ago

Nor Melinda

"I'm looking at shares of Microsoft that's MSFT and Amazon AMZN both underperforming the MAG 7 group. And this is after Rothschild and Co. an analyst over there downgraded both of these names for the first time since initiating coverage back in June of 2022. They're essentially talking about the fact that the industry is like, trust us, Gen AI is just like early cloud 1.0. But it seems that this is just really echoing those sentiments about a potential AI bubble and whether or not a lot of these companies are overstating what expectations should be versus what they will actually be able to deliver."

The speaker highlights that Microsoft (MSFT) is under pressure following a downgrade by Rothschild, citing concerns that the tech sector may be overhyping the potential of Gen AI in a manner similar to early cloud developments, which could indicate an emerging AI bubble.

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