Is Microsoft Stock Underperforming the S&P 500?

Microsoft Corporation (MSFT), headquartered in Redmond, Washington, is synonymous with productivity software, services, and solutions worldwide. Valued at $3.09 trillion by market cap, the company is the world’s most valuable company and dominates the PC software market with more than 80% of the market share in operating systems. MSFT’s Azure is the second-largest public cloud platform in the world and provides companies with the ability to train their own AI models. 

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and MSFT definitely fits that description. The tech giant has taken rapid strides in the fast-growing generative AI market, integrating it into its search and across its suite of productivity software.