Microsoft falls: "You have to demonstrate that you can match China's advances in AI"

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By TP

Microsoft This Thursday has fallen into the stock market (-6.18%) despite presenting a better quarterly results than expectedand it is that investors are concerned about the slowdown of their cloud business, which has grown but less than in previous periods, and also the competition of the Startup China Depseek in terms of artificial intelligence (AI).

Farhan BadamiGlobal Etoro Market Analyst, says that, for Microsoft, «The challenge is clear: it has to demonstrate to investors that it can match or overcome China's advances in AI«In addition, he points out that» the debate is not whether the expense in AI is sustainable, but who will dominate the long -term space. «» The market seems to be reacting exaggerated by the appearance of Deepseek in China, which has scared short -term investors. Some analysts are skeptical of their statements about the budget and the use of GPU, but Their advances have fed speculation about the reduction of AI costs. Although no large technology company has adjusted its strategy in response, the market seems to believe that the training and inference costs could plumme Microsoft has achieved, «with some income of 69.6 billion dollars, 12% more than in the same period of the previous yearand exploitation revenues that increased by 17%, to 31.7 billion dollars. «However, despite these» solid figures «, Microsoft shares have fallen» because investors reacted to a slight breach of the cloud income expectations already broader concerns about the changing picture of AI«.» The AI ​​remains a central point for Microsoft, and its CEO, Satya Nadella, highlights its rapid growth, since the company is in the process of investing approximately 80,000 million dollars in fiscal year 25 to ensure its domain of the AI. The increase in capital expenses and competition have raised doubts about the long -term sustainability of expenditure on AI. Some investors are concerned that advances in training efficiency in AI can alter Microsoft strategyalthough there is no clear evidence of immediate change, «he adds. On the other hand, this analyst considers» that Microsoft's rumored interest in acquiring Tiktok has also fed speculation«If the agreement materializes, he explains,» it would mean the first major incursion of the company in social networks, which could give a new form to technology, the privacy of the data and, in general, to the relations between states United and China «. For their part, market analysts Jesse Cohen and Thomas Monteiro They ensure that Microsoft's results can be looked at «in the light of the Deepseek situation from the beginning of the week, not because it has directly impacted the numbers, but because it brought a greater sense of urgency.» «Even with better results than expected, the figures were not impressive enough to eclipse the growing risk of Capex, particularly before an emerging competition and possibly with better margins. In this context, the market reaction shows that the current figures do not dissipate these fears, «they state. They believe that» 2025 is the most crucial year that is remembered for the AI ​​revolution in the aspect of development, but also in the financial one, since Investors hope to obtain the benefits of billion dollars invested in the last two years«.» However, said that, Microsoft remains the undisputed leader of AI On the software side and remains a stable bet for investors seeking to take advantage of the long -term perspectives of this revolution, «they conclude.