$MSFT · The Investor Channel · 2026-11-06

We will also touch on Microsoft, which held extensive discussions and took some steps from a new cloud computing perspective this week to restructure its investment portfolio .

This is why we see companies like Microsoft taking a different approach with regard to the companies that build these data centers and collaborate with them.

We will talk about Microsoft in a little while.

I also hear this at Microsoft, and at major cloud computing companies, where they order chips from Nvidia and then remain idle. Even Satya Nadella of Microsoft has acknowledged that data center construction is steadily slowing down, both earlier this year and even last year.

Also, regarding future topics at Microsoft, they are backing away from contracts for older graphics processing units .

The company adds, as we have seen at Microsoft and perhaps a few other companies, these companies are expanding their voluntary acquisitions to include five different countries as the costs of spending on artificial intelligence continue to rise.

When reviewing the financial data of these companies, what is striking, especially in Microsoft and Google , is that they achieve more with fewer employees.

Turning to Microsoft, its shares began the week at around 521 points, then closed higher. Microsoft shares saw strong momentum throughout the week, even reaching a 52-week high, closing up nearly 1.7% to end the week near 531 points.

Reports indicate that Microsoft has stated that the capacity leased from Oracle has become less useful over time because it no longer meets Microsoft's specifications. The equipment that Oracle operated and leased to Microsoft consisted of older Nvidia hardware and chips.

I'm not sure if it's A100 or H100 chips, but I suspect it's a combination of the two.

Is this evidence that Microsoft is taking a more cautious stance financially? We've already seen that. It seems to me that its chief financial officer is wiser in managing financial affairs, or perhaps has more financial influence over the company, compared to the finance directors at Meta, who are seen as merely a follower of Mark Zuckerberg, and perhaps even at Google as well, where some of the founders are still behind that company, especially Sergey Brin, which probably allows the company to spend as it pleases.

At Microsoft, Satya Nadella is in charge of the technical side, but they give, I believe, Amy Hood broad powers to control costs and manage company spending. Is this just a conservative view in an environment that allows them to forgo some demand, or is Microsoft looking to the future and considering all these signed contracts, whether with Oracle, Enscale, or even with Iran?

It's a little different, but is the company looking towards 2027 and saying maybe we don't need all of that?

Honestly, I wish I had known . I tried to find an answer before today's video. The situation remains extremely volatile. It is clear that no one wants to comment on these matters.

However, in an environment where executives and all the optimists in the sector are saying: We need more computing power, we need more computing power. Microsoft's backing out of two different deals this week is interesting , and I don't necessarily think we can consider it a trend, but I assure you that if Amazon, Google, and Meta start doing the same thing in the next two weeks, there will be significant losses to come.

Microsoft's backing out of two different deals this week is interesting, and I don't necessarily think we can consider it a trend, but I assure you that if Amazon, Google, and Meta start doing the same thing in the next two weeks, there will be significant losses to come.

Microsoft has, I believe, reached its highest level in 52 weeks, if not its highest level ever this week. The company is currently holding at a support level higher than all moving averages.

If you are looking for what I call "safety" in this market, then you should look for stocks that look like this, where all the moving averages are positive, while continuing to monitor this situation.