Key Takeaways:
- Gene Munster of Loup Ventures recommends selling Microsoft shares.
- The AI boom is "only in the third inning," limiting near-term upside.
- MSFT has fallen roughly 25% over the past twelve months to $381.70.
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Gene Munster recommends selling Microsoft as stock drops 25%
Gene Munster of Loup Ventures recommended selling Microsoft Corp., saying the AI trade is "only in the third inning" with limited near-term upside.
"The AI boom is only in the third inning, but the market has already priced in a grand slam," Munster said in a video published Monday.
Microsoft shares traded at $381.70, down roughly 25% over the past twelve months. The stock has been under pressure as investors reassess the pace of AI monetization across mega-cap technology companies, with the VanEck Semiconductor ETF falling about 2% Monday amid broader tech uncertainty.
The sell call from a prominent tech analyst could add to near-term selling pressure on MSFT shares and related technology ETFs. Microsoft reports quarterly earnings this week alongside Amazon, Apple and Meta Platforms, a slate of results that will test whether AI capital spending is translating into revenue growth.
The call puts Munster at odds with the broader analyst consensus, which remains largely bullish on Microsoft's AI opportunity. The stock's 25% decline over the past year has pushed its valuation to levels not seen since before the AI rally began, but Munster's thesis suggests further downside may be ahead as the market recalibrates expectations for AI-driven revenue. Investors will watch this week's earnings report for signs of whether Microsoft's Azure and AI services can justify the premium the stock once commanded.
This article is for informational purposes only and does not constitute investment advice.
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