Microsoft Up 14% on Q2 Strength, But Analyst Warns of AI Capex Risks

Microsoft Corp shares rallied about 14% this week after strong fiscal Q2 results, with revenue climbing 17% to $81.3B, operating income at $38.3B (47.1% margin), and Intelligent Cloud revenue up 29% to $32.9B driven by 39% Azure growth. However, Q2 capital expenditures surged to $37.5B amid AI scaling, intensifying competition from AWS and Google Cloud while raising margin pressures. Trading at a P/E of ~26 post-rally, the analyst views it as fairly valued and urges waiting for a margin of safety.