From Nasdaq:

The stock market has entered another quarterly earnings season, with a focus on the technology sector and its role in the AI revolution. Microsoft’s fiscal 2024 second-quarter results reveal a skyrocketing growth in the company’s AI-related segments, positioning it as a key player in the burgeoning AI industry.

Microsoft saw a record-high $62 billion in revenue for Q2, with its Azure cloud computing platform and AI driving much of the growth. Azure’s revenue grew by 30% in the second quarter and led to an increase of 20.3% in Intelligent Cloud revenue. The company is seeing substantial growth in Azure AI customers, with over 53,000 using the technology in Q2.

With $2.93 in earnings per share during Q2, Microsoft is seeing a 33% increase year over year, effectively positioning the company as a leader in monetizing AI software at scale. While the stock has a price-to-earnings (P/E) ratio of 36.8 – higher than the technology index’s ratio – Microsoft’s strong financial performance and growth potential to translate into a 61% upside in its stock price moving forward.



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