Microsoft also reported strong financial results, with quarterly sales rising 16% to $65.6 billion. The company's investment in AI is said to be paying off, with AI-related products expected to contribute about $10 billion to annual revenue. Microsoft's profit for the quarter increased by 11% to $24.7 billion, or $3.30 per share, exceeding Wall Street expectations. The company's productivity business segment, including its Office suite, grew 12% to $28.3 billion, while its cloud-focused business segment grew 20% to $24.1 billion.
Key takeaways:
- Alphabet's stock has soared 20% this year due to their long-term AI focus and investment. The company earned $26.3 billion in the most recent quarter, a 34% increase from a year ago, and its revenue rose 15% to $88.27 billion.
- Alphabet's AI investments have led to a 62% increase in capital expenditures to $13.1 billion. The company plans to maintain this level of spending in AI, which is expected to rise even higher next year.
- Microsoft's quarterly sales surged 16% to $65.6 billion, with AI-related products expected to contribute about $10 billion to the company's annual revenue. The company spent $20 billion in the last quarter, mostly for its cloud computing and AI needs.
- Microsoft reported an 11% increase in quarterly profit to $24.7 billion, beating Wall Street expectations. Its productivity business segment grew 12% to $28.3 billion, its cloud-focused business segment grew 20% to $24.1 billion, and its personal computing business grew 17% to $13.2 billion.