Pershing Square Holdings, in its Q2 2026 investor letter, noted that Microsoft (MSFT) shares are currently trading at one of their lowest price-to-earnings multiples in the past decade. This reflects investor concerns about AI potentially disrupting its core M365 productivity suite, the growth prospects of its Azure cloud business, and the company's significant increase in computing infrastructure investments. However, Pershing Square believes that M365 is more resilient to AI disruption due to its deeply embedded workflows, superior value proposition, and proprietary Copilot AI agent. Concurrently, Azure is well-positioned in a supply-constrained computing market, and its capital expenditures are prudent investments for accelerating growth. Pershing Square anticipates these tailwinds will enable Microsoft to sustain its historical high-double-digit earnings growth over the long term.