MSFT stock tanked following the news that OpenAI is killing its Sora project, despite no negative news regarding MSFT's core business. Because MSFT is trading as a proxy for OpenAI, the recent sharp drop means the negative AI sentiment is already priced in, leaving MSFT's underlying business undervalued. Go long on MSFT, as the stock is "so much more valuable right now" with the OpenAI hype deflation already reflected in the price. OpenAI's struggles could have a deeper fundamental impact on MSFT's future cloud/AI revenue than currently anticipated.
MSFT
HIGH
Mar 26, 19:33
Key Points
['MSFT is trading as a proxy for OpenAI.', 'Stock dropped on OpenAI Sora cancellation.', 'AI hype deflation is likely priced in.', 'MSFT is highly valuable at current levels.']
March 26, 2026 at 19:33