We recently published a list of 5 Companies Set To Address DeepSeek AI Concerns In Earnings Calls Today. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other companies set to address DeepSeek AI concerns in earnings calls today.
The revelation about DeepSeek AI’s capabilities and costs rattled the US market a couple of days ago. Major semiconductor, power, and other AI-related stocks lost a big chunk of their value during trading, estimated at over a trillion dollars. Nvidia alone lost $600 billion in market cap, the most ever single-day drop in history.
Since that crash, a closer look at DeepSeek AI’s claims has calmed investor nerves. There are questions about the firm’s claims on training costs and even if true, analysts are slowly realizing they may not be as bad for many companies as originally thought. Because the US is involved in an AI race with China, it is unlikely the country is going to stop investing in its AI infrastructure just because it supposedly got beaten at it. In fact, that is all the more reason to start spending more.
Later today, a number of tech companies announced their earnings report. The probability of them being asked questions on DeepSeek AI is quite high. Investors want to listen to what these companies think and for that reason, these earning calls may be more relevant than ever in the market’s history.
To come up with the list of 5 companies that may address DeepSeek AI concerns in their earnings calls today, we only considered Mega Cap stocks that are expected to announce their earnings later today.
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) is a provider of computer software, devices, services, and solutions operating through intelligent cloud, productivity & business processes, and more personal computing segments. The company supplies its products through retail stores, digital platforms, Original Equipment Manufacturers (OEMs), and resellers.
Over the last year, MSFT stock has underperformed the market despite its dominance in AI. It is the strong balance sheet and the recurring revenue that helps the stock stay afloat even in tough times. Its cloud business as well as its AI initiatives will be in focus when the earnings are announced later today. A 10% topline growth is expected, but that is not something investors will be looking at later today.
Capital Expenditure will continue to be a focus point. The spending on AI infrastructure alone is expected to cross $80 billion this fiscal year. Microsoft (NASDAQ:MSFT) has a unique advantage where it can integrate its AI advancements into existing enterprise workflows and doesn’t really have to look for a customer, they are already there. The DeepSeek AI threat doesn’t exist for Microsoft. Even if the model goes mainstream, a good chunk of the resulting training for users will most likely be implemented on MSFT’s cloud network in the US. The company’s dominance in Agentic AI is also unlikely to be affected by what DeepSeek currently has to offer. Having said that, it will be interesting to see what the management has to say about these developments at the earnings call later today.
Overall, MSFT ranks 5th on our list of companies set to address DeepSeek AI concerns in earnings calls today. While we acknowledge the potential of MSFT as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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