Bill Ackman, the billionaire manager of Pershing Square Capital Management, built a new position in Microsoft during the first quarter of 2026 [1].
The move signals a high-conviction bet from one of the world's most prominent activist investors that the tech giant remains undervalued despite recent market volatility. By entering the position during a sell-off, Ackman is positioning his fund to profit from the scaling of artificial intelligence and cloud infrastructure.
Pershing Square disclosed the investment in a 13F filing submitted to the SEC on Friday, May 15 [4]. According to the filing, the shares were acquired throughout the first quarter of 2026 [5]. The investment comes at a time when Microsoft shares have shed more than 15% year-to-date [1].
Ackman said he believes Microsoft is underpriced and possesses strong growth prospects. His strategy focuses specifically on the company's ambitions in AI and its expanding cloud services [1]. This bullish outlook persists even as the company maintains an aggressive spending trajectory; Microsoft has a capital spending plan of $190 billion for 2026 [1].
The timing of the entry follows a period of price correction for the software leader. The closing price for Microsoft shares the day before the announcement was $409.43 [1].
While the 13F filing provides a snapshot of the fund's holdings, it also revealed other shifts in Pershing Square's portfolio. The firm exited its position in Hilton, and reduced its stake in Alphabet during the same first-quarter period [4].
“Bill Ackman is positioning his fund to profit from the scaling of artificial intelligence and cloud infrastructure.”
Ackman's entry into Microsoft suggests a shift toward 'growth at a reasonable price' within the tech sector. By buying into a 15% decline, he is betting that the massive capital expenditures on AI will translate into sustainable revenue growth rather than acting as a drag on margins. This move may encourage other institutional investors to view the recent dip as a buying opportunity rather than a sign of a peaking AI cycle.
