Microsoft Stock Down 27% From All-Time High: 2 Reasons It Could Double by 2030
Microsoft stock has fallen 27% from its all-time high due to Wall Street concerns over heavy capital spending on AI infrastructure. However, the article argues the stock could double by 2030 based on two key factors. First, Microsoft leverages a large installed enterprise customer base, with 365 Copilot seats exceeding 20 million and accelerating net additions. Its WorkIQ system holds over 17 exabytes of data, enhancing Copilot's capabilities. Nearly 90% of Fortune 500 companies use agents built with Copilot Studio. Second, Microsoft has a massive $627 billion cloud backlog in remaining performance obligations. Despite guidance for up to $190 billion in capital expenditures in 2026, management expects Azure enterprise cloud revenue to accelerate in the second half of 2026. Investments in custom Maia AI chips should lower compute costs and improve margins. Analysts project 16% annual earnings growth, and the stock's discounted P/E multiple could boost returns if it rerates higher.
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