Microsoft's Sell-Off? Here's Why I'm Buying

Recently, Microsoft's stock has experienced fluctuations, primarily trading between $400 and $450 for a few months. This recent sell-off has been triggered by panic in the market following a press release from DeepSeek, which has created an opportunity for investors looking to make a purchase at a reasonable level.

It's important to scrutinize the claims made by DeepSeek regarding its alleged $6 million costs for AI training. This figure appears to be misleading, as it does not account for significant capital expenditures (CAPEX), research and development (R&D), and operational expenses. In contrast, Microsoft has a robust infrastructure in place, supported by High Flyer, that justifies its substantial investments in AI and data centers.

Microsoft's CAPEX investments in AI and data centers are essential for addressing supply constraints and enabling the company to sustain a double-digit growth in its Azure segment. This positions Microsoft as a leader in the marketplace, crucial for capturing the growing demand in the tech sector.

Moreover, current geopolitical tensions and security concerns may limit the relevance of companies like DeepSeek; this situation allows Microsoft to leverage its strengths and continue to grow within the realms of AI and cloud solutions. Microsoft's established reputation and capabilities in these areas position it well for continued dominance.

For those considering an investment in Microsoft, now may be an opportune time to buy, given the recent stock price adjustments and the potential long-term growth prospects for the company in a rapidly evolving technological landscape.

Microsoft, Investing, AI