Down 15% in 2026, Should You Buy the Dip in Microsoft Stock?

Despite its robust presence, even the strongest technology leaders sometimes encounter rough times in the market. This seems to be true for Microsoft (MSFT), whose stock price is decreasing considerably from its late 2025 highs despite its growing cloud and artificial intelligence (AI) businesses. Although ishares rose above $550 in the last 12 months, they have since decreased considerably and are now trading near $410. This represents a 25% drop from highs and is a sign of a corrected stock price for Microsoft.

For investors, it is essential to determine whether the stock price is decreasing because of poor financial performance or a market adjustment following a strong run. Technology leaders, especially large-cap stocks, sometimes encounter market volatility due to interest rate and market rotation concerns. However, Microsoft is growing its AI and cloud businesses considerably. Still, Wall Street believes there is upside potential for shares. Accordingly, it's becoming increasingly popular for investors to determine whether they can purchase shares of MSFT stock at a more attractive price.