On January 29 (local time), Microsoft's stock price took a nosedive, closing 10% lower. This precipitous fall resulted in a mind - boggling $357 billion disappearing from its market value in a single trading day, marking the most significant decline since March 2020.

Financial reports revealed that Microsoft's revenue for the fiscal quarter stood at $81.273 billion, representing a 17% increase on a year - on - year basis. However, when we zoom in on its core Intelligent Cloud segment, the revenue growth was 29%. Specifically, the revenue from its Azure cloud business grew by 39% year - on - year, which is a bit of a letdown as it's lower than the 40% growth achieved in the previous fiscal quarter.

During the same fiscal quarter, Microsoft's capital expenditure soared to a record high of $37.5 billion. This substantial investment was mainly directed towards bolstering its AI capabilities. The market, though, is filled with apprehension. There are concerns that Microsoft's massive investment in AI might take a considerably longer time to generate the expected returns.