![\"Almost](\"https:\/\/static.toiimg.com\/thumb\/msid-130158132,imgsize-43052,width-400,height-225,resizemode-4\/microsoft-ceo-satya-nadella-deploys-emergency-overhaul.jpg\" "\\"Satya")
<\/div>\n<\/div>\n<\/div>\nAlmost two years after Google CEO Sundar Pichai declared a company-wide \u2018Code Red\u2019 over AI, Microsoft CEO Satya Nadella has now deployed his own emergency overhaul, dubbed \u2018Copilot code red\u2019, according to a report by Benzinga. The report adds that Nadella is driving a sweeping effort to improve the performance and user experience of Copilot. Microsoft CEO also aims to restore investor confidence as Microsoft is facing mounting competition from Anthropic and other AI rivals.<\/p>\n The report adds that Microsoft\u2019s cloud arm Azure remains a critical growth driver. BNP Paribas analyst Stefan Slowinski highlighted that about 30% of new cloud capacity last quarter was allocated internally to Copilot and large language model development. This move of the company raised concerns about competition with partners like OpenAI. Yet he believes that Azure could still exceed consensus expectations, even if internal usage rises to 50%, thanks to the growing token demand and higher GPU pricing.Along with this, the analyst also pointed out Microsoft\u2019s ability to balance capital spending, free cash flow, and AI monetisation. With free cash flow margins around 20%, improving Copilot sentiment and potential upside in Azure could help put Microsoft\u2019s stock back on track.<\/p>\n Microsoft shares closed at $368.93, trading 2.9% below their 20\u2011day simple moving average and 15.9% below the 100\u2011day SMA. The stock remains under pressure from January\u2019s \u201cdeath cross\u201d pattern, though momentum indicators suggest downside pressure may be easing. Key resistance sits at $413, while support is near $356.Nadella\u2019s \u201cCopilot code red\u201d underscores the urgency of strengthening Microsoft\u2019s AI execution as it seeks to reassure investors and regain momentum.<\/div>\n<\/div>\n\nGrowth of Microsoft Azure and capacity concerns
<\/h2>\n<\/p>\nMicrosoft stocks remain under pressure
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