Microsoft Stock News

As it hits the half-century mark, Microsoft is the world's second most valuable company, behind only Apple. The company now generates $13 billion in annualized revenue from artificial intelligence, in part thanks to its OpenAI partnership.

The United States and China are two undisputed global superpowers, not just based on their economies and militaries but also in the artificial intelligence (AI) arms race. China-based DeepSeek caused shockwaves and was a game changer in AI.

The stock market is off to a shaky start to 2025, with the S&P 500 (^GSPC -4.84%) index down nearly 12% from its recent all-time high. With that said, it's coming off back-to-back annual gains of more than 25% in both 2023 and 2024, which is something it has only achieved on one other occasion in its history dating back to 1957.

Microsoft has pulled back on data center projects around the world, Bloomberg reports, suggesting that the company is wary of expanding its cloud computing infrastructure too rapidly.

As a whole, Magnificent Seven stocks were on pace to drop more than $800 billion in market cap. That reflects how tech stocks have led the broader market amid Thursday's steep sell-off.

The equity markets are seeing a broad selloff in the wake of President Trump's announcement yesterday on reciprocal tariffs, led by “Magnificent 7” stocks.

Shares of the “Magnificent 7” - Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Nvidia, and Tesla - fell sharply following US president Donald Trump's sweeping tariff announcement. Apple Inc (NASDAQ:AAPL, ETR:APC) took the hardest hit, down 8.8% at $204, as its reliance on Chinese and Southeast Asian manufacturing puts it at direct risk.

The XLK ETF has corrected to below 25x forward earnings, making it attractive due to its strong weighting in growth companies like Microsoft and Nvidia. Tariffs and trade wars could negatively impact tech companies, particularly Apple, by increasing costs and reducing margins, affecting their stock performance. Diversification within the ETF, especially in software companies like Microsoft, Sal...