Surprise after the red light? AI strongly supports microsoft Q3 Azure revenue growth of over 30%, but expects Q4 growth to slow down, with increased AI spending.
In the third quarter, Microsoft's total cloud revenue grew by 22% year-on-year, exceeding expectations. AI contributed to a 12 percentage point increase in Azure, higher than the second quarter; Excluding the impact of exchange rates, Azure cloud revenue increased by 34% in the third quarter, slightly slower than the second quarter but still above expectations. However, it is expected that Azure's revenue growth in the fourth quarter will further slow to 31%-32%; Capital expenditures accelerated in the third quarter, with a year-on-year increase of nearly 79%, and is expected to increase quarter-on-quarter in the fourth quarter. The stock price initially rose by over 2% after market trading, but later dropped by over 4%.
AI cloud "boosts" microsoft performance, but weak outlook leads to stock price decline! Is investing in AI a blessing or a curse?
On Wednesday in post-market trading Eastern Time, Microsoft released its performance report for the first quarter of the 2025 fiscal year. The data shows that Microsoft's quarterly revenue was $65.585 billion, a 16% year-on-year increase, with an eps of $3.3, a 10% year-on-year increase, both of which exceeded market expectations.
"Dah Sing": Goldman Sachs - Microsoft (MSFT.US) narrative could shift from recent capital expenditure concerns to AI revenue opportunities.
Goldman Sachs research reports indicate that the market's focus on Microsoft (MSFT.US) may be shifting from concerns about capital expenditures to profit opportunities in the field of artificial intelligence (AI), reiterating a positive outlook on its prospects. The bank points out that Azure's growth may accelerate in the second half of the year, with growth rates potentially reaching 34% to 35%. In addition, the maximum operating loss from OpenAI is only $13 billion, and it is believed that Microsoft's cash on hand and interest income growth can mitigate some of the impact. Goldman Sachs also noted that although Microsoft's capital spending may increase significantly by 75% in fiscal year 2024, the company is expected to generate approximately $77 in the next twelve months.
Officially challenging Google! OpenAI launches ChatGPT search function, supported by major media such as News Corporation and Associated Press.
The search feature will be first launched for the paid version of ChatGPT Plus and Team, and will be available to all free users in the coming months; ChatGPT can search the web based on user queries, and users can also manually search by clicking on the search icon.
Tech Giants See AI Bets Starting to Pay Off -- WSJ
Are the financial reports of the technology giants in the US stock market insufficient in the beginning of the season, is the "AI hot" expectation overhyped or just a technical profit-taking pullback?
Large technology companies need to meet investors' expectations for both the past and the future more than any other industry.