Bill Ackman announced Friday that his hedge fund, Pershing Square Capital Management, built a new equity position in Microsoft during the first quarter [1, 2].
The move signals a high-profile bet on the continued dominance of artificial intelligence and cloud computing by one of the world's most influential activist investors. Ackman's entry into the stock follows a period of volatility for major tech firms.
Ackman shared the update on X, the social media platform formerly known as Twitter [1, 5]. He said the investment was timed to take advantage of a specific window of opportunity in the market. "We began building our position in February after a meaningful share‑price decline," Ackman said [5].
The investment strategy focused on the company's current market price relative to its long-term potential. Ackman said that Microsoft is underpriced and that Pershing Square sees a compelling valuation [2].
Beyond the stock price, Ackman cited the company's growth prospects in AI and cloud computing as primary drivers for the investment [2, 5]. The first quarter of 2026 [1] served as the accumulation period for the stake.
"We built a position in Microsoft in the first quarter," Ackman said [1].
Pershing Square is known for taking concentrated positions in large-cap companies. This new stake aligns with the firm's approach of investing in high-quality businesses with predictable cash flows, and strong competitive moats.
“"Microsoft is underpriced and we see a compelling valuation."”
Ackman's investment suggests that institutional confidence in the monetization of AI remains strong despite market fluctuations. By entering the position after a share-price decline, Pershing Square is applying a value-investing lens to a growth sector, betting that Microsoft's infrastructure in cloud and AI provides a safety margin that justifies the current valuation.
