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2025-12-03T17:14:45.755Z
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Microsoft stock fell on Wednesday on a report that the company is having trouble selling AI tools to customers.
According to The Information, the tech giant is rethinking its AI strategy.
The report is a potential warning that huge AI capex could take longer than expected to pay off.
The move: Microsoft stock fell as much as 3% on Wednesday. The tech leader has had a volatile few months, but is still ip 14% year-to-date.
Why: Microsoft’s decline on Wednesday is being driven by a recent report suggesting that the company may not see massive AI investments translate into higher revenues as quickly as previously thought.
The Information reported on Wednesday morning that Microsoft has lowered several AI sales growth targets, noting that customers don’t seem to be embracing the company’s newest tools. It added that this comes after some sales staff had missed goals.
What it means: Microsoft is among the select few AI “hyperscalers” spending enormous sums to build out the technology. Any change in customer attitudes toward AI or in the timelines for how long such massive spending may take to yield a return would likely spur a major recalibration of the tech trade among investors.
The Information’s report comes as concerns are mounting that the air may slowly be starting to seep out of the AI bubble, with many of the biggest tech leaders behind the boom having the most to lose if investor appetites for AI wane.
Top AI stocks have been under pressure for the last month, with valuations looking bloated and uncertainty growing around the timeline for when investors and the broader economy can expect to see the benefits of AI tools.
Microsoft, for its part, has pushed back on The Information’s report, with a spokesperson telling CNBC that it had not lowered sales quotas for AI products.