Microsoft Corporation's stock traded lower during Friday's session, declining approximately 0.3% to $397.29 in morning activity. The move underperformed the broader Invesco QQQ Trust, which tracks the Nasdaq 100 Index and posted a modest gain. The SPDR S&P 500 ETF Trust also edged lower.
The technology giant's shares have become a focal point for investor sentiment regarding capital expenditures required for cloud computing and artificial intelligence infrastructure. This comes amid a backdrop of increasing costs for data centers, semiconductors, and the substantial power consumption demanded by advanced AI systems. With market positioning currently tight, even minor developments are being scrutinized more intensely than usual.
Microsoft has been part of a broader divergence among major technology companies. Through Thursday's close, the stock had declined more than 17% since the start of 2026. Amazon.com Inc. shares, for comparison, were down about 11% over the same period as investors await clearer signals on future AI demand. "It's kind of a perplexing market," remarked Marta Norton, Chief Investment Strategist at Empower. Looking forward, King Lip, Chief Strategist at BakerAvenue Wealth Management, added, "Next week is going to be pretty important for software."
In a notable transaction, Microsoft board member John W. Stanton acquired 5,000 shares of the company on February 18. The purchase was executed at a price of $397.35 per share, totaling nearly $2 million, according to a Form 4 filing with the U.S. Securities and Exchange Commission. Following this transaction, Stanton's direct holdings increased to 83,905 shares. An additional 3,622 shares are held indirectly through a family trust.
Microsoft shares went ex-dividend on Thursday, meaning new buyers are not entitled to the company's next quarterly distribution. The software maker declared a dividend of $0.91 per share, payable on March 12 to shareholders of record as of February 19.
The energy requirements of artificial intelligence have been a prominent theme this week. Microsoft has secured contracts for 40 gigawatts of new renewable energy capacity, with 19 gigawatts already operational on the power grid. "As we continue to grow we want to maintain that 100%," stated Noelle Walsh, Corporate Vice President of Cloud Operations and Innovation at Microsoft.
Separately, the company addressed a media report, clarifying in Washington that U.S. Immigration and Customs Enforcement does not use its Azure cloud platform for mass surveillance of civilians. A Microsoft spokesperson stated, "Microsoft policies and terms of service do not allow our technology to be used for the mass surveillance of civilians."
Broader macroeconomic data provided little support for risk appetite early Friday. The U.S. Gross Domestic Product grew at an annualized pace of 1.4% in the fourth quarter. Meanwhile, the Personal Consumption Expenditures price index for December, the Federal Reserve's preferred inflation gauge, rose 0.4%. The core PCE index, which excludes food and energy, also increased by 0.4%.
Despite the insider buying activity, analysts suggest such moves may offer limited support if investor concerns deepen that AI-related expansion is eroding profit margins faster than it is boosting revenue. Disappointing data center demand figures or further volatility in interest-rate-sensitive technology sectors could keep Microsoft's shares range-bound.
Market attention now turns to Nvidia Corporation's quarterly earnings report, scheduled for release on Wednesday, February 25. The chipmaker's results are widely viewed as a critical test for AI-driven sentiment across the semiconductor industry and the broader cloud supply chain. Nvidia will conduct its earnings conference call at 2:00 p.m. Pacific Time, or 5:00 p.m. Eastern Time.
