United Kingdom, Jan. 30 -- Shares in Microsoft plunged dramatically on Thursday (29.01.26) as investors grow increasingly worried about the company's prolific spending on AI.

Microsoft stock fell around 10 per cent in a single session, wiping roughly $357 billion off the company's market value - its biggest daily decline since 2020 - and dragging the wider software sector down with it.

The sell-off followed the company's latest earnings report, which showed slowing growth in its Azure cloud business at the same time as capital expenditure surged to record levels.

Microsoft's stock has since risen by 0.55 per cent in Friday's (30.01.26) pre-market trading.

While Microsoft beat headline revenue expectations, Azure growth came in slightl...