Microsoft shares were trading down as much as 5% on Wednesday, a day after the software maker issued worse-than-expected quarterly revenue guidance. Microsoft has been increasing its capital expenditures to get infrastructure in place to provide AI services to developers at other companies and roll out assistant capabilities to apps such as Word and Outlook. The extra spending cuts into Microsoft's cloud gross margin. "The messaging on Copilot was more about tempering rather than inflating expectations," wrote UBS analysts led by Karl Keirstead, which also has a buy rating on Microsoft. Raymond James' Andrew Marok and Mauricio Munoz, with the equivalent of a buy rating on Microsoft shares, had a similar tone.

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Persons: Amy Hood, Mark Murphy, Karl Keirstead, It's, Brad Reback, Raymond James, Andrew Marok, Mauricio Munoz, Satya Nadella, — CNBC's Michael Bloom Organizations: Microsoft, JPMorgan, UBS