Microsoft (MSFT) Plans $5.5 Billion Cloud and AI Push in Singapore by 2029

TLDR

• Microsoft plans to invest $5.5 billion in cloud and AI infrastructure in Singapore through 2029
• MSFT stock rose 3.12% on the news, but is still on track for its worst quarter since 2008
• Q2 revenue rose 17% to $81.3 billion; Azure grew 39% year-over-year
• Bank of America reinstated with a Buy rating and $500 price target; UBS cut its target to $510 from $600
• The stock is trading near its lowest valuation in roughly a decade after retreating from its October 2025 high

Microsoft (MSFT) closed at a gain of 3.12% on Wednesday after the company announced a $5.5 billion investment in Singapore’s cloud and AI infrastructure, set to run through 2029.

Microsoft Corporation, MSFT

The announcement was made by Microsoft’s vice chair and president, Brad Smith, who said the spending will cover both new infrastructure and ongoing operations.

The Singapore commitment follows a separate announcement just one day earlier, where Microsoft said it would invest over $1 billion in Thailand.

In recent years, the company has pumped billions into the broader Asia-Pacific region, including Indonesia, Malaysia, and India.

Beyond infrastructure, Microsoft said it would also provide tools and training for students, teachers, and nonprofits in Singapore, citing uneven AI readiness as a concern.

Strong Numbers, Weak Stock

Despite the positive news, MSFT has had a rough few months. The stock is heading for its worst quarter since the 2008 financial crisis.

That disconnect from its fundamentals has caught the attention of Wall Street.

Microsoft’s Q2 results were hard to argue with. Revenue rose 17% to $81.3 billion. Cloud revenue hit $51.5 billion, and Azure grew 39% year-over-year.

The company said cloud revenue crossing the $50 billion mark in a single quarter underlines its position as a core player in enterprise software and AI infrastructure.

Still, investors have grown more cautious. The broader market is asking harder questions about the cost and timing of AI spending, not just the growth story.

Microsoft, Amazon, Alphabet, and Meta were expected to collectively spend around $635 billion on AI infrastructure in 2026.

That kind of spending, against a backdrop of rising power costs and a shakier economic environment, has made some investors nervous about returns.

Analyst Views Split

Bank of America analyst Tal Liani recently reinstated coverage with a Buy rating and a $500 price target, citing durable multi-year growth drivers in both cloud and AI.

UBS Global Research also kept a Buy rating but cut its 12-month price target to $510 from $600.

Investor Adam Spatacco, tracked by TipRanks, argued the recent selloff is an overreaction, calling Microsoft a “premier AI franchise” trading at an unusually attractive level.

Analysts noted that MSFT is now trading at its lowest valuation in roughly a decade, after a steep decline from its October 2025 peak.

The stock rose 3.12% on Wednesday as the Singapore investment news drew attention back to the company’s long-term infrastructure push.

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