The past week or so have been rough for (NASDAQ: MSFT). The company's massive investment in artificial intelligence (AI) infrastructure came under scrutiny following Chinese start-up DeepSeek's revelation that it has developed AI models at a fraction of the cost that the tech giant has spent so far. This sent Microsoft shares into a tailspin.
Microsoft stock came under more pressure following the release of results for its fiscal 2025's second quarter (ended Dec. 31, 2024) on Jan. 29. Though the company beat Wall Street's earnings and revenue expectations easily, its revenue guidance for the current quarter was lower than what analysts were expecting.
All this explains why Microsoft stock is down more than 5% since Jan. 27, when DeepSeek's news rocked the AI world. But is this an opportunity for savvy investors to buy this Magnificent Seven stock on the dip? Let's find out.
Source Fool.com