Don't Panic Over Microsoft: These 2 Mega-Cap Stocks Are the Real Opportunity

Microsoft (NASDAQ: MSFT) shares are down around 20% to start the year, as of this writing. The company was caught up in worries about the impact of artificial intelligence (AI) on software-as-a-service (SaaS) companies and over its AI infrastructure spending.While Microsoft's enterprise software business should largely be protected from AI disruption, given how ingrained it is, and its cloud computing is growing fast and has big commitments from OpenAI, it's not the best opportunity in the cloud space, in my view.The reason is that the company has neither a top AI model nor top-tier custom AI chips, which leaves it at a disadvantage. Microsoft was smart to invest and team up with OpenAI at the start of the AI boom, but its reliance on its models has also set it back a bit. Meanwhile, it is still very early in the process of developing custom AI chips, and remains behind in this area, as well.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool