MicrosoftThe company’s better-than-expected earnings report wasn’t enough to prevent the stock’s steepest sell-off in two years, as investors instead focused on the company’s expectations for the current period.

Shares of Microsoft fell 6% on Thursday, heading for their worst day since Oct. 26, 2022, when they fell 7.7%. That was a month before the public release of ChatGPT from Microsoft-backed OpenAI, a launch that paved the way for a boom in investment in artificial intelligence.

For the period ending in December, Microsoft called for revenue between $68.1 billion and $69.1 billion, implying 10.6% growth at the midpoint of the range. Analysts polled by LSEG expected revenue of $69.83 billion.

Revenue from Microsoft’s cloud infrastructure business, Azure, rose 33%. CFO Amy Hood said on a call with analysts that growth, at constant exchange rates, will be 31% to 32% in the second fiscal quarter.

On Tuesday, Googling reported 35% annual growth in its rival cloud business to $11.35 billion. Amazonwhich leads the cloud infrastructure market, is expected to report results after the close on Thursday.

“We view first-quarter results as solid for the key growth businesses of Azure and Office, although tempered by a softer outlook for the second quarter,” BofA Global Research analysts wrote in a report Thursday. They still recommend buying the shares.

Fiscal first-quarter revenue rose 16% from a year earlier to $65.59 billion, surpassing the average analyst estimate of $64.51 billion, according to LSEG. Earnings per share of $3.30 beat the average estimate of $3.10.

Net income rose 11% to $24.67 billion, compared to $22.29 billion in the same quarter last year.

Third-party vendors are late in providing data center infrastructure to Microsoft, meaning the company won’t be able to meet demand in the second fiscal quarter.

“I feel good that even in the second half of this fiscal year, some of that supply and demand will match,” CEO Satya Nadella said during the earnings call.

Microsoft’s AI investments remain a key focus for investors as the company builds out its infrastructure and ramps up chip spending to handle heavier workloads. Microsoft has invested nearly $14 billion in OpenAI, which was valued at $157 billion in a funding round earlier this month.

Hood said on the call that she expects the company to suffer a $1.5 billion revenue loss in the current period, mainly due to an expected loss from its investment in the AI ​​startup.

Meanwhile, spending on real estate and equipment grew 50% year over year to $14.92 billion. The consensus among analysts surveyed by Capital IQ was $14.58 billion.

As of Thursday’s close, shares of Microsoft were up just over 8% this year, while the Nasdaq was up 21% over the same period.

— CNBC’s Ari Levy contributed to this report.