Should You Buy Microsoft Stock After Its 25% Correction, or Run for the Hills?

2026-03-08 05:14:00 ET

Microsoft (NASDAQ: MSFT) is one of a handful of hyperscalers that offer an astronomical amount of cloud computing capacity through hundreds of centralized data centers scattered all over the world. Microsoft rents this capacity to business customers via its Azure cloud platform, and many of them use it to develop and deploy artificial intelligence (AI) software.

Azure is consistently the fastest-growing piece of Microsoft's entire business. However, investors are also focusing on the company's AI virtual assistant Copilot, which is now embedded into flagship software products like Windows, Bing, and 365 (which includes Word, Excel, and Outlook). It represents a massive financial opportunity for Microsoft, but adoption has been modest so far, which has contributed to the recent sell-off in its stock price.

Microsoft stock is currently down 25% from its all-time high, but it's now the cheapest it has been in more than three years. Should investors buy the dip, or is there more downside ahead?

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