Microsoft Stock Has Grown Roughly 15-Fold Since Satya Nadella Became CEO in 2014
Since Satya Nadella became Microsoft's CEO in February 2014, the company’s stock has grown by approximately 1,360%, with a total return of about 1,670% including reinvested dividends. This represents an annual growth rate of roughly 27%. However, recent years have seen slower performance relative to its peers and the broader market due in part to heavy capital expenditures on AI and cloud computing infrastructure. In fiscal year 2026 (ended June 30), Microsoft spent $116 billion on capex — a significant increase from previous years. While competitors like Amazon and Alphabet are also investing heavily, their revenue growth has outpaced Microsoft's in some areas. For example, Google Cloud saw a 73% year-over-year revenue gain compared to Microsoft’s 27%. Despite this, Azure is showing strong performance with annual revenue surpassing $100 billion for the first time and growing by 43% in fiscal Q4. Investors are now questioning whether Microsoft can maintain its past growth trajectory given these capital-intensive investments. While early signs suggest AI spending has had some positive impact, recent stock underperformance against both peers and the S&P 500 raises concerns about future returns.
Topics: AI Capex Trends Cloud Computing Microsoft Stock Performance
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