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Microsoft Rebuts AI Sales-Target Report as Market Reassesses Generative-AI Demand

A disputed account of Microsoft’s sales goals jolted shares and reinforced a broader reset driven by uneven enterprise uptake and massive AI spending.

Overview

  • Microsoft shares fell as much as about 3% before trimming losses after it said aggregate AI sales quotas have not been lowered and that the report conflated growth goals with quotas.
  • The Information had reported, citing Azure salespeople, that divisions reduced growth targets for tools like Foundry after fewer than one-fifth hit a 50% goal last fiscal year.
  • Investors are balancing such signals against record AI spending, with hyperscalers expected to devote roughly $380–$400 billion this year to chips, servers and data centers.
  • Questions about the durability of backlogs and funding also surfaced around Oracle, where analysts weighed a reported OpenAI‑linked commitment against more than $100 billion of debt and rising capex.
  • Sentiment remains fragile even as some results improve, with Salesforce topping Q3 expectations and raising revenue guidance while buyers still seek clearer proof that AI products drive growth.