Microsoft (MSFT) has experienced a difficult period for the company, with its stock trading down nearly 17% year-to-date, marking its worst quarterly showing since the 2008 financial crisis. However, top bank BNP Paribas has issued a warning that the company is facing a recovery, with the stock tanking by around 17%. The bank's analyst, Stefan Slowinski, believes that there is not a broken core business in Microsoft, despite the company’s massive investment in AI technology and potential for top-line growth. He also highlighted the issue of Copilot traction and Azure capacity allocation, suggesting that if the capacity had been directed to external clients, growth might have topped 40%, rather than the 38% reported. BNP estimates that nearly one-third of Microsoft’ new AI capacity last quarter was used internally, supporting its internal apps and training AI models, rather than being sold to customers. The bank also noted that Microsoft CEO Satya Nadella is reportedly working to fix Copilot, focusing on improving user experience and performance.