Microsoft eyes longest selloff since 2011 as AI trade weakens

(Bloomberg) — Microsoft Corp. (MSFT) is on track for its longest streak of daily losses in more than a decade as growing caution about the artificial intelligence trade continues to pressure big tech stocks.

Shares fell as much as 0.8% on Friday, and if they end the trading session lower it would be the longest period of declines for the software company since a nine-day drop that ended in November 2011. The stock has declined 8.6% over the eight-day stretch, erasing nearly $350 billion in market valuation.

The stock hasn’t had a positive session since it reported its quarterly results in late October. While the report featured a number of positives, including better-than-expected growth in its Azure cloud—computing business, Wall Street is growing increasingly skeptical toward the huge sums that companies are spending to build out AI infrastructure.

Microsoft spent $34.9 billion on capital expenditures in the quarter, and the company said spending will increase again in the current fiscal quarter.

The decline reflects shifting sentiment toward the AI names that have otherwise powered the market higher this year. The Nasdaq 100 Index and the Bloomberg Magnificent 7 Total Return Index are down about 4% this week. Both are on track for their biggest one-week percentage drop since April.

Bucking the trend was Apple Inc., a company that hasn’t been nearly as aggressive with AI. The stock rose as much as 0.9% on Friday as it becomes the latest haven amid AI weakness.

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As of 11:55:22 AM EST. Market Open. Advanced Chart

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