How does OpenAI’s $600B compute target affect MSFT stock today?

It reinforces a large AI workload pipeline for Azure, even after being cut from earlier talk near $1.4 trillion. That supports long-run cloud consumption, better AI attach rates, and potential margin gains as services scale. Investors should watch Azure growth, AI-driven revenue per user, and any updates to Microsoft’s data centre and silicon roadmaps.

Is MSFT attractive on valuation after recent weakness?

At about 24.9x TTM earnings with strong margins and ROE above 33%, Microsoft screens as a quality compounder. Free cash flow yield near 2.6% is modest given higher capex for AI. If earnings and Azure AI monetization keep improving, the multiple can hold. Staggered entries can help manage timing risk as momentum is still weak.

What should Canadian investors know about taxes and currency?

MSFT trades in US dollars, so CAD-USD swings affect returns. In TFSA, U.S. dividends face 15% withholding. In RRSP, they are generally exempt under the tax treaty. Dividends are modest, so growth drives returns. Consider FX conversion costs and rebalance around earnings or major AI infrastructure updates that could move the stock.

What are key dates and indicators to watch next?

Watch the April 29, 2026 earnings call for Azure growth, Copilot traction, and AI capex plans. Track RSI, MACD, and the 50-day and 200-day moving averages for momentum shifts. Also monitor updates on the Microsoft OpenAI partnership and any changes to OpenAI compute expectations or funding progress cited in credible news reports.

Global Market Insights

MSFT Stock Today: February 20 as OpenAI Cuts Spend Target to $600B

ByHuzaifa Zahoor February 21, 2026February 21, 2026

MSFT stock today sits in focus for Canadian investors after reports that OpenAI cut its long-run compute target to about $600 billion by 2030 while lining up a $100+ billion round with strategic backers. For Microsoft, this still implies heavy AI workloads landing on Azure. The latest snapshot shows US$398.46 with a price-to-earnings near 24.9 and a dividend yield near 0.88%. We explain what this shift could mean for cloud growth, how valuation stacks up, and what to watch next in Canada.