Microsoft and Alphabet both reported impressive quarterly results, showcasing significant growth driven by their investments in artificial intelligence (AI) and cloud computing.
Alphabet, the parent company of Google, saw its shares surge up to 12%, reaching a record high, after it reported strong earnings propelled by robust cloud revenue. The success was largely attributed to the increasing adoption of AI services, which are boosting business across its cloud computing units. Google Cloud, previously a weak spot, turned profitable with a first-quarter profit of $900 million, surpassing analysts’ expectations.
Similarly, Microsoft reported a 31% increase in sales from its Azure cloud computing platform, with AI contributing significantly to this growth. The company has integrated AI across its product line through partnerships like OpenAI, enabling functionalities such as document summarization and content generation. Microsoft’s AI-driven GitHub coding platform and Office AI assistant, Copilot, have also gained traction among corporate clients, further bolstering its earnings.
Both companies emphasized the expanding role of AI in driving business efficiencies and enhancing customer experiences. Despite hefty capital expenditures to support these initiatives, investors responded positively to their strong performance, contrasting with Intel’s lackluster forecast which dampened market sentiment.
Overall, Microsoft and Alphabet’s robust earnings underscored the transformative impact of AI and cloud computing in shaping the future of tech-driven businesses.
