Ackman Bets Big on Microsoft Amid AI Revolution

Hedge fund manager Bill Ackman's Pershing Square Capital Management initiated a new position in Microsoft shares starting in February 2026, according to an announcement made by Ackman on X. This acquisition occurred after Microsoft's stock experienced a 10% decline following its Q2 earnings report, driven by lower-than-expected cloud growth and increased capital expenditure.

Ackman views this as an opportune entry point, acquiring shares at a valuation of 21 times forward earnings, which is consistent with the broader market multiple and below Microsoft's historical trading average.

Microsoft's stock has seen a year-to-date decline exceeding

Microsoft's stock has seen a year-to-date decline exceeding 15% as the company navigates investor concerns regarding its Azure cloud business's revenue generation relative to its AI investments. The recent restructuring of its partnership with OpenAI, which removed Microsoft's exclusive distribution rights, further contributed to these concerns. Ackman, however, interprets this restructuring as a strategic shift towards a multi-model architecture, better serving enterprise clients.

He addressed concerns about Microsoft's $190 billion capital

Ackman also highlighted the underestimated value of Microsoft's 365 productivity suite, describing it as an indispensable and difficult-to-replicate enterprise tool. He addressed concerns about Microsoft's $190 billion capital expenditure budget for 2026, framing it as a growth investment rather than a threat to profit margins.

Furthermore, Ackman noted that Microsoft's market capitalization does not fully account for its 27% economic interest in OpenAI, which he estimates to be worth approximately $200 billion based on OpenAI's latest funding valuation. This investment aligns with Ackman's strategy of investing in major technology companies during periods of AI-related market skepticism, following similar investments in Alphabet, Amazon, and Meta.