Microsoft (MSFT) stock is down after a TD Cowen analyst note explained that the company has abandoned data center projects due to oversupply. Market Domination hosts Julie Hyman and Josh Lipton break down the stock and analyst note.

Microsoft has abandoned data center projects set to use 2 gigawatts of electricity in the U.S. and Europe in the last six months due to an oversupply relative to its current demand forecast, TD Cowen analysts said on Wednesday.

Microsoft Corp. has walked away from new data center projects in the US and Europe that would have amounted to a capacity of about 2 gigawatts of electricity, according to TD Cowen analysts, who attributed the pullback to an oversupply of the clusters of computers that power artificial intelligence.