AI and Cloud Computing Boost Revenues for Microsoft and Meta: Microsoft and Meta reported strong financial results for the last quarter, driven by notable growth in cloud computing and artificial intelligence (AI) units.
This positive performance reflects the substantial impact of both companies’ investments in these advanced technologies.

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Strong Growth

Meta Results

Summary

Strong Revenue Growth for Microsoft Driven by AI and Cloud Computing

Microsoft achieved significant revenue growth in the first quarter ending September 30,
fueled by strong cloud computing services and Office software performance.
Revenues reached $65.6 billion, up by 16%,
while earnings per share rose to $3.30, surpassing analyst expectations.
The company’s cloud computing unit reported a 34% growth after currency adjustments.
CEO Satya Nadella noted that incorporating AI models from OpenAI boosted revenue.
Furthermore, Azure services, which companies use to develop AI applications,
have driven increased demand for Microsoft’s offerings.

Strong Results for Meta-Backed by AI Enhancements in Advertising

Meanwhile, Meta reported stronger-than-expected quarterly sales,
forecasting revenue between $45 billion and $48 billion for the current quarter,
surpassing analyst expectations.
For the quarter ending September 30, the company posted revenue of $40.6 billion,
up by 19%, reflecting a marked improvement supported
by AI technologies developed by Meta for its advertising business.
Mark Zuckerberg, the company’s CEO,
emphasized the importance of AI investments in bolstering advertising performance.

Summary

The positive results for both Microsoft and Meta underscore the impact
of their substantial investments in AI and cloud computing.
Jackson Ader, an analyst at KeyBanc,
noted that the market is witnessing a significant shift toward actual production use of AI,
which is strengthening the sustainable growth potential for both companies.

AI and Cloud Computing Boost Revenues for Microsoft and Meta

AI and Cloud Computing Boost Revenues for Microsoft and Meta

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