Microsoft’s fiscal Q2 shows impressive 17% revenue growth, with operating income up 21%. Cloud segment revenue jumps by 29%, but “more personal computing” revenue declines slightly. The commercial backlog hits $625 billion, with 45% from OpenAI. Despite stock decline, Microsoft’s business remains robust, fueling AI investments with soaring capital expenditures.

Investors question whether now is the time to buy Microsoft stock. While P/E ratio seems reasonable at 25, heavy investments in cloud and AI are driving up costs. Capital expenditures in fiscal Q2 surged by 66% YoY. With uncertainty around future margins due to investments, Microsoft stock may be more of a hold than a buy for now.

Read more at Nasdaq: Down 28% From Its Highs, Is Microsoft Stock a Buy?