"TCI reduced its position in Microsoft between late 2025 and late March of this year from approximately 10 percent of the total portfolio to about 1 percent. In doing so, the fund sold virtually its entire stake, which was estimated to be worth about $8 billion."
"TCI believes that the dominant role of Office and, to a lesser extent, the Azure cloud platform could come under pressure. TCI argues that AI could radically change the way users work with productivity software. The fund fears that new AI-based platforms could displace existing software environments."
"The investor also sees risks emerging around Azure due to rapid changes in the market for AI infrastructure and cloud platforms. The move is notable because TCI has benefited from Microsoft's strong stock price for years. The hedge fund had held a significant stake in the company almost continuously since 2017 and saw the stock value rise sharply during that period."
"Nevertheless, doubts are growing among investors as to whether the massive investments in AI will pay off quickly enough. Microsoft's stock has been under pressure since the beginning of this year. Investors are increasingly questioning whether current AI expenditures will ultimately yield sufficient returns."
TCI reduced its Microsoft position between late 2025 and late March, shrinking it from roughly 10% of its portfolio to about 1%. The fund sold nearly its entire stake, estimated at about $8 billion. TCI links the decision to rapid AI development that could change how users work with productivity software. The fund expects pressure on Microsoft’s dominant Office business and, to a lesser extent, its Azure cloud platform. TCI also points to uncertainty in AI infrastructure and cloud markets. Despite prior gains from Microsoft’s strong stock performance since 2017, Microsoft’s shares have faced pressure this year as investors question whether AI spending will generate timely returns. TCI also increased its Alphabet stake from 3% to 5%, making it the largest technology investment.
Read at Techzine Global
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