Why Microsoft Stock is Down Today
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Why Microsoft Stock is Down Today Nauman Khan Thu, November 5, 2026 at 12:59 PM EST 1 min read MSFT -3.06% NVDA -8.56% This article first appeared on GuruFocus . Microsoft ( NASDAQ:MSFT ) shares fell 1.5% Thursday morning as investors weighed the company's decision not to increase its existing data center agreement with AI infrastructure provider Nscale in Texas. The move leaves the current arrangement unchanged but ends the possibility of an expansion that could have added tens of billions of dollars to Nscale's business. Microsoft made the decision several months ago, before Nscale filed for an initial public offering in September, a person familiar with the matter said. Warning! GuruFocus has detected 5 Warning Sign with MSFT. Is MSFT fairly valued? Test your thesis with our free DCF calculator. The existing commitment remains substantial. Nscale's IPO filing disclosed that work orders signed with Microsoft between September 2025 and April 2026 could generate up to $43.8 billion through December 2033, excluding optional extensions. The decision does not alter Nscale's reported contract value of about $103 billion, the source said. Microsoft and Nscale had previously agreed to deploy roughly 200,000 Nvidia AI chips across data centers in the U.S. and Europe. The latest development follows Microsoft's withdrawal from a separate project in Loughton, England, after power connection delays pushed expected availability into the 2030s. Nscale is seeking other customers for its Texas capacity, with Anthropic among the potential buyers.
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