Amid the November big tech turmoil, the popular trading expert on X, Ali Martinez, warned that the blue-chip giant Microsoft (NASDAQ: MSFT) might soon face a steep price correction.
Specifically, the analyst highlighted that MSFT stock faced multiple rejections at the $550 resistance zone, implying, based on historical performance, that a crash toward $360 is once again in the cards.
Notably, when Martinez first highlighted the pattern, he also revealed that the first support zone Microsoft shares might face on the way down stands at roughly $450 and that they risk a drop to $350 only if they fail to halt there.
Advertisement
Considering MSFT met the latest, Wednesday, closing bell at $521.12, a drop to $360 would entail a 31% plummet and a $1.2 trillion market capitalization wipeout from $3.87 trillion on November 11 to $2.67 trillion.
Can Microsoft stock really wipe $1.2 trillion from its market cap?
While a 31% drop appears radical and somewhat implausible at first glance, Microsoft’s equity was close to $350 twice in 2026 and has made repeated moves as large as $200 within relatively short timeframes.
Having started the year at $472.94, MSFT dropped to approximately $357 by late March, enjoyed a partial recovery, plummeted once more by late June before finally climbing toward and getting rejected close to $550 at the start of November.
The anxieties arising from the outcome of the U.S. midterm elections, recent trends in big tech, particularly with regard to the artificial intelligence (AI) boom – increasingly viewed as an AI bubble – and the turmoil affecting Nvidia (NASDAQ: NVDA), arguably the most important in the sector, all imply that a steep plunge is plausible.
Indeed, a data center slowdown was expected in 2027 even before the latest set of scandals, and AI has been, for some time, facing an apparent funding and profitability crisis.
OpenAI – a company famously heavily backed by Microsoft – for example, set out to raise $30 billion at a $1.4 trillion valuation in September, and the round eventually closed at $11 billion and $1.25 trillion.
Advertisement
Considering the pressure Nvidia is under, the overall trends in the sector, and the widespread – and seemingly well-founded – allegations of circular and vendor financing, the AI industry and Microsoft, as part of it, could suffer a rapid wipeout.
Featured image via Shutterstock
