Microsoft is set to report fiscal second-quarter earnings after the market closes Wednesday, with analysts largely bullish despite what Morgan Stanley called a growing “wall of worry."

Other analysts seem to agree. Out of 58 analysts that cover the stock on Wall Street, 39 rate it a "buy" and 14 rate it a "strong buy," according to Yahoo! Finance. The software giant is preparing to spend $80 billion on data centers specifically for training, deploying, and operating cloud-based AI applications.

What Happened? Shares of tech giant Microsoft (NASDAQ:MSFT) fell 7.1% in the pre-market session as stocks heavily tied to the AI market took a hit after Chinese artificial intelligence startup DeepSeek released a new large language model (DeepSeek-R1) that ranks competitively on key global benchmarks (coding competitions,