Investors are drawing parallels between the current market, especially the artificial intelligence (AI) sector, and the dot-com bubble. “Big Short” investor Michael Burry has entered the fray, launching a Substack after deregistering Scion Asset Management. Nvidia’s stock performance is being compared to Cisco in the late 1990s, with the S&P 500 dividend yield dropping to dot-com era lows.

Microsoft’s dividend yield of 0.77% is the highest among its “Magnificent 7” peers. Despite falling below historical averages, Microsoft is on track to become a Dividend Aristocrat, raising dividends annually since 2003. The stock’s recent underperformance makes it an attractive buy, especially with its healthy dividend yield.

Microsoft’s stock fell after its Q1 2026 earnings report, citing higher capex growth for the fiscal year. Rising AI capex has investors worried about returns on investments. However, Microsoft’s diversified revenue streams, including cloud and gaming, make it a strong buy for 2026. The stock’s valuations are attractive, with a forward P/E multiple just under 30x. Overall, Microsoft is well-positioned for growth despite AI bubble fears.

Read more at Barchart: This AI Dividend Stock Is a Buy Even as the S&P 500’s Yield Falls to Dot-Com Lows