Microsoft is trading lower today mainly because of renewed worries about its artificial intelligence business and regulatory scrutiny around AI.

What is happening to MSFT today

Microsoft shares are down about 2–3% today, underperforming the broader U.S. market even as major indexes move higher. The stock is trading around 478–479 dollars, roughly 5% below recent highs and also below its short‑term moving average, which makes the move feel more notable to traders.

Main reasons it is down

Recent coverage highlights several overlapping concerns that are weighing on sentiment today.

• Regulatory pressure on AI, including fresh scrutiny from U.S. state attorneys general over Microsoft’s AI practices, is making investors more cautious about the pace and profitability of AI rollouts.

• Reports that Microsoft has adjusted or lowered some internal AI sales targets have raised questions about how quickly massive AI investments will turn into revenue, even though the company disputes that these reports reflect its true quotas.

• Commentators note that AI adoption by large corporate customers is progressing more slowly than the most optimistic expectations, which adds to concerns about near‑term growth versus very high valuation levels.

How investors are reading it

Analysts and market commentary describe the move as a short‑term reaction to headlines rather than a sign of a sudden deterioration in Microsoft’s core business. However, the combination of huge AI spending, slower‑than‑hoped monetization, and rising competition from other AI providers makes the stock more sensitive to any negative AI news in the near term.