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Nov 18, 2025 4:00 PM

Microsoft Stock Slides On Analyst Downgrade As Tech Sector Faces AI Valuation Jitters And Profit-Taking Pressure

Microsoft Corp (NASDAQ:MSFT) shares are dipping on Tuesday as profit-taking and uncertainty surrounding the valuation of AI put pressure on the tech industry.

MSFT is lagging behind market performance. Find out why here.

What Happened: Rothschild & Co. analyst Alex Haissl downgraded Microsoft from Buy to Neutral rating and lowered its price target from $560 to $500.

According to Bloomberg, Haissl says that the the argument for generative AI is no longer convincing, and hyperscalers need to be used carefully. The analyst said that the underlying economics are “far weaker than assumed,” making the industry’s “trust us, Gen-AI is just like early cloud 1.0” story seem to be getting further ...