AI spending sparks historic Microsoft selloff: Opportunity ahead?

Microsoft shares are on track for their worst monthly performance since December 2000, with hundreds of billions lost in market value during June as investors reassess the outlook for heavy AI investments. Despite strong operating performance and continued Azure growth, concerns over rising capital expenditure on AI infrastructure and data centers are weighing on margins and the company's premium valuation. Analysts frame the correction as a valuation reset rather than fundamental weakness, potentially creating a long-term buying opportunity if AI returns materialise.