Microsoft stock draws institutional buying amid AI growth and recent price dip

Microsoft shares have fallen about 21% year‑to‑date and recently touched a 52‑week low, prompting analysts to view the stock as undervalued. Despite the dip, several institutional investors increased their holdings. Matrix Asset Advisors raised its stake by 20.1% to 171,359 shares, while Vanguard, State Street, Geode Capital, Morgan Stanley and Norway’s sovereign fund also added to their positions during the last quarter. The buying is driven by Microsoft’s expanding AI offerings, such as the Copilot tool and Azure’s AI infrastructure, which have boosted AI‑related revenue.

The company is also navigating challenges, including a layoff of roughly 4,800 employees—about 3,200 in the Xbox division—reflecting a broader cost‑cutting effort in its gaming business.