As Microsoft Cancels Its Data Center Leases, These 2 AI Stocks Could Be Winners

Stock market sentiment regarding artificial intelligence (AI) has soured significantly in the past few months. The DeepSeek spook damaged the argument that AI GPU and compute demand was going to not only stick around, but continue to grow exponentially. Then, analysts reported that Microsoft (MSFT) was canceling some of its data enter leases, sending AI stocks further into a downturn.

The biggest losers were data center pure-plays and energy companies that were thought to benefit significantly from increased electricity demand. That said, it’s not a good idea to be entirely bearish on all AI stocks since there is still demand for AI hardware, and cloud businesses are still growing.