2026-03-30 11:02:51
Microsoft’s AI strategy will “ultimately be vindicated”, according to an investment expert.
The technology giant is on course for its worst quarterly performance since the global financial crisis – but Jake Seltz, a portfolio manager at Allspring Global Investments, has still struck an optimistic note about the company’s long-term prospects.
He told Bloomberg: “I think the stock has a lot of long-term value.
“Its AI strategy will ultimately be vindicated, and I think it is largely insulated from the biggest AI disruption fears. In the meantime, those concerns are creating an opportunity, especially if you’re willing to have some patience.”
However, not all analysts share that confidence. Ben Reitzes of Melius Research, who holds a neutral rating on the stock, warned that the tech giant faces significant near-term challenges.
He said: “Microsoft’s upside in Azure is capped as it scrambles to fix Copilot and its own models — and that doesn’t end in just one quarter.”
Meanwhile, Jonathan Cofsky, portfolio manager at Janus Henderson Investors, pointed to broader concerns about competition from AI startups.
He said: “There is this concern that rather than paying Microsoft, we’ll see more customers go directly to AI vendors, which could disrupt the core business, or at least pressure pricing and margins.”
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