Microsoft Stock Is a Buy as Its AI Business’ Annual Revenue Run Rate Swells

For 2026, Microsoft (MSFT) has guided for capital expenditure of $190 billion. The big spending on AI infrastructure has translated into investors being cautious. As a result, MSFT stock has declined by 9.83% in the last 52-weeks. 

However, the sideways to lower price-action seems like a good buying opportunity. Even as the markets remain cautious, Microsoft’s AI backlog (commercial remaining performance obligation) swelled to $627 billion. This provides clear revenue and cash flow visibility.