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Microsoft shares drop 23% amid concerns over AI investments

As one of the primary investors in Artificial Intelligence (AI), Microsoft witnessed a significant devaluation of its shares last Tuesday, March 31, 2026. According to CNBC, the company saw a 23% quarterly drop, its largest since the 2008 financial crisis.

Microsoft shares drop 23
Microsoft shares drop 23. (Image: ABWaves Game)

This downturn is attributed to the fact that, despite maintaining its leadership in the software sector, Microsoft has struggled to deliver the massive growth promised by its AI investments. Simultaneously, the company continues to dedicate heavy spending to the sector to build the necessary infrastructure.

External factors and infrastructure costs

CNBC explains that the decline in Microsoft’s stock is also influenced by factors beyond the company’s control. These include conflicts in Iran, which have raised expectations of a rapid and intense spike in fuel prices, subsequently increasing the costs of constructing new data centers.

The struggles of Copilot

Market analysts believe a core issue is the lack of popularity for Copilot. Despite Microsoft’s heavy investment in the technology, consumers continue to favor assistants from competitors such as OpenAI and Anthropic.

Microsoft is not alone in this recent devaluation. A shifting market belief that Software as a Service (SaaS) companies can no longer provide the same level of growth as in the past has also impacted firms like Adobe, Atlassian, and ServiceNow, with some seeing drops of over 30%.

Strategic leadership changes

Despite the current volatility, experts consulted by CNBC state it is too early for investors to abandon Microsoft, noting that the company remains at a historical high and has recorded consistent revenue increases in recent years.

Acknowledging that Copilot is not yet a mainstream success, the corporation has appointed Jacob Andreou (formerly of Snap) to lead Copilot user experiences. The role was previously held by Mustafa Suleyman, who will now focus on the development of new AI models.

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