Both companies surpassed Wall Street estimates with their latest quarterly results
Generative AI is encouraging Microsoft’s core enterprise clients to spend more with the company. Photo: Getty
Both Microsoft and Google owner Alphabet sent a clear message to investors on Thursday: Our spending on artificial intelligence and cloud computing is paying off.
The companies trounced Wall Street estimates with their latest quarterly results, lifted by a surge in cloud revenue – fuelled in part by booming use of AI services. Alphabet shares surged as much as 12pc, the biggest gain since July 2015, to their highest level ever. The rally pushed Alphabet’s valuation past $2trn. Microsoft rose as much as 3.5pc.
