Microsoft's downbeat Azure growth sparks tech sell-off as AI payoff takes longer

The company has lost 10% since a record high on July 5, amid a broader market sell-off driven largely by megacap stocks

OpenAI CEO Sam Altman with Microsoft chief Satya Nadella at OpenAI's first developer conference last year. Picture: Barbara Ortutay/AP

Microsoft's weaker-than-expected revenue growth in its Azure cloud business dragged its shares down 5% in after-hours trading on Tuesday, and rocked other big tech stocks in another sign the payoff in hefty AI investments may take longer.

Shares of Amazon.com fell 2.3%, and those of Nvidia pared losses to trade flat after falling 10%.