Microsoft Corporation's stock edged higher in Friday morning trading, climbing approximately 0.3% to $403.20. The modest gain followed the release of U.S. inflation data that came in softer than economists had projected, providing some relief to growth-oriented technology shares.
The Labor Department reported the Consumer Price Index increased 0.2% for January, bringing the annual inflation rate down to 2.4%. Core CPI, which excludes volatile food and energy components, rose 0.3% for the month and 2.5% year-over-year.
AI Partnership with Energy Giant
Separately, Microsoft announced a non-binding memorandum of understanding with Saudi Arabian oil company Aramco to explore industrial artificial intelligence applications using Microsoft's Azure cloud platform. The agreement represents a potential expansion of Microsoft's AI customer base into the energy sector, though it remains at an early, non-contractual stage.
Market participants continue to scrutinize the substantial capital expenditures being made by major technology firms on artificial intelligence infrastructure. With Microsoft shares still trading approximately 27% below their 52-week high of $555.45, investors are increasingly focused on whether these investments will translate into sustainable cloud revenue growth and improved margins.
Dividend Date Approaches
The company's quarterly dividend of $0.91 per share is scheduled to go ex-dividend on February 19, with payment to shareholders expected on March 12.
Despite the morning's positive movement, broader concerns persist about the technology sector's valuation amid ongoing questions about the timeline for AI-driven profitability. Recent market volatility has highlighted investor sensitivity to any signs that the massive investments in artificial intelligence may not deliver expected returns in the near term.
