MSFT

Microsoft Corp.

2026-01-16 07:32 PM

+1.25%

Microsoft rebounds after multi-day selloff on positive AI outlook and data center investments

Wedbush analyst Dan Ives predicted 'very strong' Q4 earnings for Microsoft and other Big Tech names, citing significant AI enterprise demand and comparing the current environment to 'mid-1996' genuine adoption rather than speculative bubble, per Benzinga. BlackRock and Microsoft's $30 billion AI infrastructure fund raised $12.5 billion, while Microsoft announced a potential $500M-$1B data center investment in Michigan.

Analysis

This gain follows four consecutive down days totaling roughly 5% decline, largely driven by concerns over data center cost commitments. Today's bounce appears to be a technical recovery supported by positive analyst commentary and continued AI investment momentum. MSFT outperformed both the flat S&P 500 and XLK sector, suggesting stock-specific drivers rather than broad tech strength, though the magnitude of the rebound is modest relative to the prior selloff.

Sources

Date: 2026-01-16

Price: $462.37

Type: Stock Specific

Confidence: medium