After massive investments in AI infrastructure, Microsoft (MSFT.US) sounds the charge for AI monetization! Copilot is expected to experience a breakthrough moment.

Copilot's optimistic growth expectations are crucial for Microsoft's currently sluggish stock price. The underlying reason is not complicated: Microsoft is now at the intersection of two of the most valuation-damaging narratives—on one hand, a surge in AI infrastructure investment, which has the market worried that massive capital expenditures will continue to erode free cash flow; on the other hand, the pessimistic logic that "AI will disrupt everything" is compressing software stock valuations.