Bill Ackman’s Insights on Microsoft and the Additional Appeal of the Magnificent Seven Stocks

Key Points

• Hedge fund manager Bill Ackman bought shares of Microsoft during the first quarter of 2026.

• Microsoft’s stock fell significantly amid concerns over AI disruptions, leading to one of its lowest valuations in a decade.

• Recently, Microsoft’s valuation is at approximately 21.8 times forward earnings estimates.

On Friday, billionaire investor Bill Ackman disclosed that his hedge fund, Pershing Square USA (NYSE: PSUS), has established a core position in Microsoft (NASDAQ: MSFT). According to Pershing’s 13-F filing, Ackman divested most of his holdings in Microsoft competitor Alphabet to facilitate this acquisition. Despite fears stemming from the broader “SaaS-pocalypse” and issues surrounding Microsoft’s partnership with OpenAI, Ackman believes these concerns are exaggerated and that Microsoft has strong fundamentals to flourish in the evolving AI landscape.

As of early 2026, Microsoft’s Azure cloud platform holds a 39% growth rate, although its performance is currently intertwined with OpenAI’s fortunes. Ackman emphasized Microsoft’s ability to innovate and maintain strong market presence, highlighting its unique investments in custom AI models and silicon, setting the stage for potential recovery and growth despite recent market challenges.