Microsoft (NASDAQ: MSFT) announced on Wednesday that it will invest $50 billion in AI infrastructure across the Global South. The announcement was made at the AI Summit in India, New Delhi, where executives from global giants met several world leaders. Nvidia’s CEO Jensen Huang backed out of the summit at the last moment, citing “unforeseen circumstances.” Microsoft stock remains on the radar now with the promise of an additional $50 billion investment.
This comes after Microsoft had already announced a $17.5 billion AI investment in India last year. The additional spending in the Global South has raised eyebrows as tech stocks are under pressure over excess spending. If returns on investment don’t come on time, a crash is on the cards. Microsoft’s stock is already under severe strain as it crashed nearly 17% year-to-date. It is among the least-performing tech assets in the sector and is bound to lose more in value.
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Time To Buy Microsoft Stock Now?
Microsoft stock is now trading below the $400 range, reaching a low of $396. The $50 billion AI investment in the Global South is under the lens, as the expenditure will be made in developing, emerging, or lower-income countries. The Global South includes countries like Indonesia, Pakistan, the Philippines, Vietnam, Thailand, Myanmar, and Bangladesh, among others. However, Microsoft did not specify which part of the Global South the investments will be poured into.
Tech giants are yet to come out of the ‘shock’ of AI spending among the investor community. The spotlight has fallen on MSFT, further making the stock remain under the radar. It is best to remain on the sidelines and let the AI downturn play out. The best strategy is to take entry positions during the dips and invest smaller amounts. Until the tech market recovers, this would be the best strategy.