Microsoft shares fell 15% in June. This decline mirrors a broader downturn in the artificial intelligence sector. A disappointing chip sales forecast from Broadcom contributed to the trend. Analysts also cite capital reallocation toward upcoming IPOs for SpaceX, Anthropic, and OpenAI as a factor.
The company’s core business in AI and cloud computing remains robust. Microsoft’s AI division reached a $37 billion annual revenue run rate last quarter. This represents a 123% year-over-year increase. Azure cloud revenue continues to demonstrate strong growth.
Investors are debating whether the recent slide is a temporary dip or a long-term trend. Some market participants view the current price as a strategic buying opportunity.