As the market digests Big Tech’s ambitious artificial-intelligence spending plans for 2026, the relative cheapness of Microsoft’s stock underscores a new dichotomy in technology investing.
Microsoft’s stock
MSFT is now cheaper than IBM’s IBM, with the two trading at 23.0x and 23.7x forward earnings, respectively. Microsoft has been trading at a lower multiple than IBM since Jan. 29. Before this recent shift, the last time this had occurred was July 25, 2013, according to Dow Jones Market Data.
Microsoft’s stock is cheaper than IBM’s for the first time in a decade. What that says about the AI trade.
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As the market digests Big Tech’s ambitious artificial-intelligence spending plans for 2026, the relative cheapness of Microsoft’s stock underscores a new dichotomy in technology investing.
Microsoft’s stock
MSFT is now cheaper than IBM’s IBM, with the two trading at 23.0x and 23.7x forward earnings, respectively. Microsoft has been trading at a lower multiple than IBM since Jan. 29. Before this recent shift, the last time this had occurred was July 25, 2013, according to Dow Jones Market Data.
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