This is a transition phase for large-cap tech.

Microsoft shares experienced a decline following the company's announcement that its capital expenditures for calendar-year 2026 are projected to reach $190 billion, surpassing its previous AI investment outlook of $150 billion. According to NS3.AI, despite this adjustment, Microsoft exceeded Bloomberg's consensus expectations with third-quarter earnings per share of $4.27, based on revenue of $82.89 billion. Additionally, Microsoft reported that its AI business has achieved an annual revenue run rate of $37 billion, marking a 123% increase year over year.