Why You Should Snap Up Microsoft Stock as It Hits New 52-Week Lows

The artificial intelligence (AI) rally that propelled U.S. tech stocks higher in 2023 and 2024 and helped the S&P 500 Index ($SPX) post over 20% gains for two consecutive years has now faded. Ever since DeepSeek revealed its ultra-low-cost AI model, attention has instead shifted to China, with names like Alibaba (BABA) rallying smartly and outperforming U.S. tech peers.

While all prominent AI plays – including the once formidable Nvidia (NVDA) – are looking weak as investors weigh the longevity of the trade, Microsoft’s (MSFT) underperformance stands out. The Satya Nadella-led company never revisited its July 2024 highs and is the only constituent of the “Magnificent 7” that hasn’t hit fresh record highs in that timeframe.