📉 Historic Sell-Off: Microsoft Suffers $357 Billion Market Cap Wipeout Amid AI Capex Fears

Microsoft ($MSFT) has officially entered the history books for the wrong reason. In a single trading session, the tech giant saw $357 billion in market value evaporate, marking the second-largest single-day loss in stock market history.

This historic crash trails only Nvidia's "DeepSeek Shock" of 2025, signaling a growing investor intolerance for skyrocketing AI capital expenditures without immediate revenue acceleration.

📊 The Leaderboard: History's Largest Market Cap Wipeouts

(Chart Source: Market Data 2026 | Visualized by Ainvest)

📉 Analysis: Why Did Microsoft Crash?

While Microsoft reported strong top-line revenue, the market's reaction highlights a shift in sentiment regarding Artificial Intelligence ROI.

1. The "Capex Wall"

Microsoft announced a staggering 66% year-over-year increase in Capital Expenditures, primarily driven by data center expansion and AI chips. Wall Street is no longer satisfied with "building for the future"—they demand immediate margin expansion.

2. Azure Deceleration

Despite the spending, Azure's growth rate showed signs of cooling. The combination of slowing cloud growth and rising costs created a "perfect storm" for bears, triggering algorithmic sell-offs similar to Meta's crash in 2022.

3. Comparison to Nvidia's "DeepSeek Shock"

Rank #1 and Rank #2 on the wipeout list are now both AI-related, but for different reasons:

• Nvidia (2025) crashed on fears that AI models were becoming too efficient, reducing demand for hardware.

• Microsoft (2026) crashed on fears that AI infrastructure is becoming too expensive, compressing margins.

🔮 Investor Outlook: Opportunity or Warning?

Historically, mega-cap wipeouts have often presented buying opportunities for long-term investors.

• Meta recovered from its -$232B loss in 2022 to reach new highs by 2024.

• Amazon similarly rebounded after its 2022 post-pandemic slump.

The Big Question: Is Microsoft's AI bet a momentary stumble or a structural warning sign for the entire sector?

Track real-time sentiment and institutional flows on Ainvest.

💡 FAQ (People Also Ask)

What is the largest single-day stock loss in history? As of 2026, the largest loss is Nvidia's $589 billion drop on Jan 27, 2025, known as the "DeepSeek Shock." Microsoft's $357 billion loss on Jan 29, 2026, is now the second largest.

Why did Microsoft stock drop today? Microsoft stock dropped due to investor concerns over a massive increase in capital expenditures (Capex) related to AI, combined with slowing growth in its Azure cloud division.