Billionaire Bill Ackman revealed on Friday, May 15, 2026, that his hedge fund, Pershing Square, has established a major new position in Microsoft ($MSFT). Ackman is seizing on a 15% year-to-date decline in the stock, arguing the market is severely underestimating the tech giant’s AI durability.
The Key Numbers:
- The Entry: Pershing began buying in February 2026 after shares slumped post-earnings.
- Valuation Advantage: Ackman acquired shares at 21x forward earnings—a rare level roughly in line with the S&P 500 and well below Microsoft’s 5-year median P/E of ~34x.
- Capital Commitment: Ackman explicitly backed Microsoft’s massive $190 billion capex plan for 2026 as essential “growth spend” for Azure and AI infrastructure.
Why Ackman is Bullish:
- AI Core: He views Azure and M365 (including the $30/mo Copilot) as the most valuable ecosystems in enterprise tech.
- Overblown Fears: Ackman dismissed concerns over the OpenAI partnership “restructuring,” viewing it as a deliberate move toward a more flexible, multi-model AI strategy.
- New Fund Core: Microsoft has also been made a “core holding” in his newly launched NYSE-listed fund, Pershing Square USA ($PSUS).
The Bottom Line: Following successful contrarian bets on Alphabet, Meta, and Amazon, Ackman is doubling down on the “Magnificent Seven.” He believes Microsoft’s current 25% discount to its “fair value” (estimated by analysts at ~$550) makes it the most attractive AI play on the board.