AI Sell-Off: Why I'm Pounding the Table on This Incredible Stock

By Keithen Drury – Mar 26, 2026 at 7:37PM ESTKey PointsMicrosoft continues to post excellent results.The stock is now trading at the lowest levels since the AI arms race began. Artificial intelligence (AI) stocks have had a rough go in 2026. The sector was likely due for a break after dominating the markets since 2023, but that doesn't mean there still aren't compelling investment opportunities. The reality is that the market may be tired of AI, but the growth will likely continue at its current pace (and maybe even greater) for some time, probably through 2030. This momentum means that once investors get used to all of this AI spending, some of the biggest names in the space could be ready to rocket higher. One of the biggest bargains in the market right now is Microsoft (MSFT 1.37%). Microsoft is a huge player in AI, but its software is also a critical part in the day-to-day operations of countless businesses around the globe. Microsoft is a stalwart that isn't going anywhere, but its stock has been slammed in recent weeks. I think investors should start pounding the table on this stock, as it has seldom been this cheap over the past decade. Image source: Getty Images. Microsoft looks like a huge bargain The words "Microsoft" and "bargain" rarely end up in the same sentence, but I think investors are free to start using that terminology. While Microsoft has traded at a premium to the market over a long time frame, it has earned that through consistent execution and market-beating growth. ExpandNASDAQ: MSFTMicrosoftToday's Change(-1.37%) $-5.07Current Price$365.97Key Data PointsMarket Cap$2.8TDay's Range$365.19 - $374.7252wk Range$344.79 - $555.45Volume37MAvg Vol35MGross Margin68.59%Dividend Yield0.94% Nothing has changed on the execution side, and Microsoft is still the industry standard when it comes to how a business should operate. Microsoft posted 17% revenue growth in its most recent quarter, demonstrating that the business is still delivering strong results. On the more AI-focused side of Microsoft's business, it delivered strong growth as well. Its cloud document segment, Azure, captures the majority of this revenue, as it's a place where AI developers can build and train AI models for use. This segment saw 39% revenue growth, showcasing why Microsoft needs to spend billions of dollars to continue expanding its AI footprint. None of the investment theses has changed over the past few months, yet its stock price has. After the latest bit of sell-offs, Microsoft is nearing a decade-low valuation. MSFT Operating PE Ratio data by YCharts I'm using the operating price-to-earnings ratio because it removes one-time accounting effects and investment gains (which Microsoft has a ton of, thanks to its OpenAI investment). Anytime you can snag shares at this low of a price tag has been a genius buying opportunity, and I think right now is no different. From a more traditional valuation standpoint, Microsoft trades for 22.9 times trailing earnings. Considering the broader market, as measured by the S&P 500 (^GSPC 1.74%), trades for 23.8 times trailing earnings, I think it's safe to say that Microsoft is an absolute bargain at these levels. As a result, I think investors should scoop up Microsoft's shares before they rebound, as this is a rare opportunity. Read NextMar 26, 2026 •By Daniel SparksMicrosoft, Meta, and Alphabet Stocks Are All Getting Hammered. But I Think Only 1 Is Worth BuyingMar 26, 2026 •By Daniel Foelber2 "Magnificent Seven" Stocks Down Between 10% and 23% to Buy Right NowMar 26, 2026 •By Prosper Junior BakinyThe Nasdaq Is Down 8% From Its High. These Are the Tech Stocks I'd Buy First.Mar 26, 2026 •By James BrumleyEverybody Thinks AI Spending Is Peaking. This Company's Order Book Says Otherwise.Mar 26, 2026 •By Adam SpataccoMicrosoft Is Having Its Worst Start to a Year Since 2008. Is That a Red Flag or a Once-in-a-Decade Buying Opportunity?Mar 26, 2026 •By John BallardNvidia Says the "Inflection Point of Inference" Has Arrived. Here Are 2 AI Stocks to Buy for 2026.About the AuthorKeithen Drury is a contributing Motley Fool technology analyst covering AI, semiconductors, cybersecurity, and SaaS stocks. In addition to The Motley Fool, Keithen is a mechanical engineer and has held roles at Honeywell and smaller industrial companies like Brand Hydraulics and Lincoln Industries. He holds a bachelor’s degree in mechanical engineering from Dordt University.TMFTripleOptionStocks MentionedMicrosoftNASDAQ: MSFT$365.86(-1.40%)-$5.18S&P 500 IndexSNPINDEX: ^GSPC$6,477.16(-1.74%)-$114.74*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.