Microsoft stock is cheaper than IBM for the first time in a decade, signaling a new landscape in AI trading

Glonghui, February 10th｜As the market digests the ambitious AI spending plans set by major tech companies for 2026, the relatively low price of Microsoft (MSFT) shares highlights a new pattern in technology investing. Microsoft’s stock is now cheaper than IBM (IBM), with their forward P/E ratios at 23.0 and 23.7, respectively. Since January 29, Microsoft’s P/E ratio has remained below that of IBM. According to Dow Jones Market Data, the last time this occurred was on July 25, 2013. This valuation “inversion” was first pointed out by Fiscal.ai’s X account, indicating that investors’ perspectives on Microsoft and other tech companies spending billions of dollars to build AI infrastructure have shifted.