Microsoft Hits 1-Year Low After BMO Slashes Target on Capex Surge

Microsoft shares slid 1.4% in pre-market trading on July 9 and touched a fresh 52-week low near $353 after BMO Capital cut its price target to $500, citing ballooning AI infrastructure costs and memory-price pressure. The move extends a brutal June selloff that erased more than $570 billion in market value and left the stock down roughly 23% year-to-date. Despite the weakness, Azure revenue surged 40% and the company’s AI business reached a $37 billion annualized run rate last quarter, while commercial remaining performance obligations hit a record $627 billion. Investors are now focused on July 29 earnings for signs that cloud momentum can offset the $190 billion 2026 capex burden.