Investors are concerned about Microsoft’s AI-driven growth strategy as shares dropped over 7% following its Q2 earnings release. Revenue for Azure and cloud services rose 39% but missed estimates due to GPU allocation. Microsoft’s reliance on OpenAI, with $625 billion in obligations, raises concerns over its profitability and future revenue.

CEO Satya Nadella defends Microsoft’s chip allocation strategy, focusing on customer lifetime value. However, investors worry about OpenAI’s reported tripling losses to $14 billion in 2026. Questions arise about Microsoft’s ability to realize future revenue if OpenAI’s cash burn continues to grow.

Despite concerns, the Motley Fool Stock Advisor team did not include Microsoft in their list of 10 best stocks to buy now. Historical examples show significant returns from stocks recommended by the team in the past.

Read more at Yahoo Finance: Why Microsoft Stock Dropped This Week