Microsoft shares fall as AI spending hits record $37.5 billion in Q2, up 66% year-over-year; cloud growth slows, raising investor concerns about delayed returns on investment.

Microsoft Drops After Reporting Record Spending on AI Hardware

Microsoft Corp.’s spending surged to a record high and cloud sales growth slowed, sending the shares down amid investor concerns that it could take longer than expected for the company’s AI investments to pay off.Capital expenditures for the fiscal second quarter hit $37.5 billion, up 66% from a year earlier and exceeding analyst estimates for $36.2 billion....