Key insights
- The author argues that Microsoft's underperformance relative to other Big Tech companies despite strong earnings is unjustified. Concerns about OpenAI collaboration and data center costs are dismissed, citing Microsoft's diversification and Azure's growth potential. This suggests a potentially undervalued MSFT, but the impact is limited due to the opinion-based nature of the analysis.
And I think that analyst do not either. Almost everybody talks about "fears due to collaboration with OpenAI" and "cost of raising data centers for AI". But those reasons are just so stupid.
Even if OpenAI flips, it won't hurt microsoft a little bit. It's like their windows phone i 2015, if it goes smoothly great, if not, who cares, company will still dominate corpo market.
About data centers - main growth comes from Azure which is still expanding every year, if MSFT won't use these data centers for AI, then it will use it for Azure, so spending so much money on them should be see as good thing for future growth, not a risk.