From Nasdaq:

Microsoft is expected to report a 15.8% jump in quarterly revenue, largely driven by adoption of products infused with AI and demand for cloud services. As a result, the company is now the most valuable in the world, surpassing Apple. Microsoft’s investment in AI, its early lead, and expansion of AI products will drive growth.

Analysts expect AI investments by major companies, including Microsoft, to show returns soon. According to Morgan Stanley, a majority of CIOs see Microsoft AI products as a top priority. Microsoft now offers a $30/month AI tool and has rolled out its main AI tool widely. Azure growth is expected to benefit significantly from the increasing AI demand. OpenAI’s situation is predicted to have minimal impact, if any, on Azure’s AI contribution.

The growth in Microsoft’s cloud business and its AI services is leading to increasing market share for Azure. Microsoft expects 26-27% growth for Azure and has projected 16-19% sales growth for its Windows-based business segment. A 57% climb in shares and other tech stocks, fueling a 24% rally in S&P 500, makes Microsoft one of the top choices for investors.

A recovery in the personal computers market is expected to lift revenue growth, with sales growth in Windows and devices hitting a four-year peak. At the same time, Microsoft announced layoffs at Activision Blizzard and Xbox. Despite this, the company continues to post strong numbers, with a 57% climb in shares last year.

Microsoft expects the December-quarter gross margin for the cloud business to be mostly flat from a year earlier as it spends to expand its AI infrastructure to meet growing demand. Second-quarter operating expenses are expected to surge the most in five quarters. The company is focusing on investing in AI infrastructure to meet growing demand. Second-quarter operating expenses are expected to surge the most in five quarters.



Read more: PREVIEW-Microsoft set for AI-powered revenue surge as stock pulls ahead