$MSFT · Microsoft drops 20% on skepticism over AI capex returns

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Bloomberg Tech

AI Chip Selloff Spreads Across Global Markets | Bloomberg Tech 7/07/2026

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Microsoft drops 20% on skepticism over AI capex returns

2026-07-07 · 13 company · 7 thematic

sentiment

10 bull1 bear2 neu

speakers

vanessa larco

Former GP at a large venture firm, launched Premise to invest in pre-seed/seed AI startups with a founder-first thesis, avoiding overpriced repeat-founder rounds.

ryan

Host of the podcast (Long Strange Trip). Previously worked at PTC in the 1990s. Built HubSpot through 'founder mode' flat organization. Experimented with eliminating org charts/titles 4 years in but reverted due to lack of intelligence systems. Now exploring 'Dorsey mode' AI-centered organization.

joel shulman

Manages an ETF that held ~$300M in SpaceX pre-IPO (14% position), generated $130M profit, and now tracks SpaceX's Nasdaq 100 inclusion and fundamental thesis.

peter elstrom

Leads Bloomberg's coverage of Asian technology companies, particularly Korean semiconductor makers Samsung and SK Hynix.

kunjan sobhani

Covers semiconductor industry with focus on server design, data center infrastructure, memory cycles, and sovereign AI spending trends.

robert shipman

Analyzes corporate bond markets and credit fundamentals, particularly for large tech issuers funding AI infrastructure.

quote

“THERE IS A LOT MORE SKEPTICISM ABOUT MICROSOFT IN CONTRAST. THAT STOCK IS DOWN MORE THAN 20%. IT HAD ITS WORST MONTHLY PERFORMANCE SINCE DECEMBER 2000. THERE IS A LOT OF SKEPTICISM, ALL THESE COMPANIES ARE SPENDING AGGRESSIVELY ON AI AND I…”

—ryan

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Microsoft drops 20% on skepticism over AI capex returns

Microsoft has seen its worst month since December 2000 as investors question the return on aggressive AI spending, with cash flow pressure evident from equity raises and debt mark…

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