{"id":2162011,"date":"2024-01-29T14:23:03","date_gmt":"2024-01-29T19:23:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-set-for-ai-powered-revenue-surge-as-stock-pulls-ahead\/"},"modified":"2024-01-29T14:27:19","modified_gmt":"2024-01-29T19:27:19","slug":"microsoft-set-for-ai-powered-revenue-surge-as-stock-pulls-ahead","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/microsoft-set-for-ai-powered-revenue-surge-as-stock-pulls-ahead\/","title":{"rendered":"Microsoft poised for AI-driven revenue surge as stock outperforms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmicrosoft-set-for-ai-powered-revenue-surge-as-stock-pulls-ahead%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2162011&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>January 29, 2024 \u2013 6:18 AM PST<\/strong><\/p>\n<p>(Reuters) \u2013\u2063 Microsoft\u00a0(MSFT.O)\u00a0is expected to announce a \u200dremarkable 15.8% surge in quarterly revenue,\u2064 marking its strongest growth in nearly two years. The increasing adoption of its \u200dproducts infused with generative AI is driving demand for its cloud services, propelling the company&#8217;s success.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Thanks to its early lead in artificial intelligence, Microsoft is poised to \u200csolidify its position\u2062 as the largest company by market value this year. Surpassing Apple by a small margin, Microsoft \u200dclaimed the top spot on Friday with a valuation \u200dof $3 trillion, dethroning Apple, which had held the title since 2011.<\/p>\n<p>The upcoming \u200cresults from Microsoft, which has committed over $10 billion to invest in\u200c OpenAI, the posterchild of generative AI and creator of ChatGPT, will set the stage for AI\u2064 expectations this year. In 2023, investors poured billions of dollars into AI technology, and now they eagerly await the returns on\u200d their investments.<\/p>\n<p>While analysts predict that any boost to companies&#8217; revenues will be modest in the next few months, Wall\u2062 Street will closely monitor whether these investments are starting to yield results.<\/p>\n<h3>\u201cGen\u200d AI has emerged \u200bas the\u200b top priority for \u200c(chief information officers) and Microsoft is \u2062uniquely well positioned, with the majority of CIOs expecting to use a Microsoft AI \u200cproduct in the next 12 months,\u201d<\/h3>\n<p>Morgan Stanley analyst Keith Weiss stated in a note dated Jan. \u200c11.<\/p>\n<p>Over the past three months, Microsoft has widely introduced its flagship AI tool, the $30-a-month &#8220;Copilot,&#8221; for its Microsoft 365 service. This tool can draft emails, create presentations,\u2062 and compile meeting highlights.<\/p>\n<p><strong>Jefferies analyst Brent Thill<\/strong> stated in a research note, <strong>\u201cWe expect AI \u2064contribution to Azure growth to\u2064 increase, with\u200c our checks pointing\u2064 to strong demand for Azure AI services.\u201d<\/strong><\/p>\n<p><strong>\u201cIt\u2019s worth highlighting that we expect the situation at OpenAI \u2064will have a minimal impact, if any, on Azure\u2019s \u200cAI contribution in (the second quarter),\u201d<\/strong> he added.<\/p>\n<p>The growth of\u200c Microsoft&#8217;s cloud business is also accelerating as customers anticipate utilizing its AI services and purchase computing power accordingly. This has enabled Azure to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/with-the-taliban-an-end-to-the-opium-trade\/\" title=\"With the Taliban, an End to the Opium Trade?\">gain market share<\/a> as it competes with Amazon.com&#8217;s AWS and Alphabet&#8217;s Google Cloud.<\/p>\n<p>Microsoft projected a 26% to 27% growth for Azure in the second \u200bquarter ending \u200con Dec. 31. Analysts from Visible Alpha anticipate a 27.7% growth for Azure.<\/p>\n<p><strong>\u201cIt\u2019s too early to be\u200c modeling revenue contribution from GenAI before 2025 \u2062for any software company not named Microsoft,\u201d<\/strong> stated RBC Capital Markets analyst Rishi Jaluria.<\/p>\n<p>In October, Microsoft announced that it expects its gross margin for the cloud business in\u2064 the December quarter to remain\u200c mostly flat compared to the previous year, as it invests\u2062 in expanding its AI infrastructure \u200bto meet the growing demand. According to LSEG, operating\u200d expenses in the second quarter are \u2062expected to experience the most\u200b significant surge in five quarters.<\/p>\n<p>A recovery in the personal computers market is anticipated to drive revenue growth in Microsoft&#8217;s Windows and devices \u2062business to its highest level in\u200b four years.<\/p>\n<p>For its Windows-based business segment, which includes the recent acquisition of gaming firm Activision, the company forecasts a sales growth of approximately 16%\u200d to 19% in the second quarter. Last week, Microsoft announced that it\u200c would be letting go of 1,900\u2062 employees at Activision Blizzard and Xbox, representing about 8% of the overall Microsoft Gaming\u2064 division.<\/p>\n<p>Microsoft&#8217;s shares soared by 57% last year, contributing to a 24% surge in the \u2062S&#038;P 500 in 2023, along with a rally in other tech stocks such as Alphabet and Nvidia.<\/p>\n<p><sup>Reporting\u2062 by Yuvraj Malik in Bengaluru; Editing by\u2064 Sayantani Ghosh and\u2062 Sriraj Kalluvila<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\t\u200b \t\tShare \u200bthis post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Louis Perron, campaign advisor and strategist, says that now that Trump looks to be the number one challenger to Joe Biden, he needs to take the focus off of himself and keep\u200c it on Joe Biden\u2019s shortfalls. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Conservatives are \u2064worried the FBI and\u2062 CIA may be\u2064 coming for them, \u2063but one\u2063 national security expert \u200dexplains how we can overcome this \u2064threat.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Scott LoBaido<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Sheriff Wayne Ivey<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>January 29, 2024 \u2013 6:18 AM PST<\/strong> (Reuters) \u2013 Microsoft\u00a0(MSFT.O)\u00a0is expected to announce \u200da 15.8%\u200b jump in quarterly\u200b revenue, its best growth\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>X is in the process of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/musks-x-aims-to-hire-100-content-moderators-in-austin-by-end-of-year\/\" title=\"Musk's X plans to recruit 100 content moderators in Austin by year-end\">hiring 100 content moderators<\/a> for a new office in Austin, Texas that will focus on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russian-figure-skater-valieva-banned-for-doping-roc-loses-olympic-gold-cas\/\" title=\"Russian figure skater Valieva has been banned for doping, resulting in the ROC losing their Olympic gold\">fighting child \u2063abuse content<\/a>.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Intel\u00a0slumped more than 12% on Friday following a bleak first-quarter revenue outlook<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Microsoft\u00a0will let go of 1,900 employees at Activision Blizzard and Xbox this week.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What are the expectations\u2062 for\u200b AI contributions to Microsoft&#8217;s Azure\u200c growth and how does it compete with other cloud service providers<\/h2>\n<p><span>  Microsoft&#8217;s Strong Growth Driven by Generative AI Products and Cloud Services<\/p>\n<p>January 29, 2024 \u2013\u2062 6:18 AM PST (Reuters) \u2013 Microsoft (MSFT.O) is expected \u200dto announce a\u200b remarkable 15.8% surge\u200d in quarterly revenue, marking its strongest growth in nearly two years. The increasing adoption of its products infused with generative \u2063AI is driving demand for its cloud\u200b services, propelling the company&#8217;s success.<\/p>\n<p>Thanks to its early lead in artificial intelligence, Microsoft is poised to \u200bsolidify its position as the largest company by market value this year. Surpassing Apple by a small margin, Microsoft claimed the top spot on Friday with a valuation of $3 trillion, dethroning Apple, which had\u200d held the title since 2011.<\/p>\n<p>The upcoming\u200d results from Microsoft,\u200d which has committed over $10 \u2063billion to invest in OpenAI, the posterchild of generative AI and creator\u2064 of ChatGPT, will set the stage for AI expectations this year. In 2023, investors poured\u200d billions of\u2063 dollars into AI technology, and now they eagerly await the \u200breturns on their investments.<\/p>\n<p>While analysts predict \u2064that any boost to companies&#8217; revenues will be modest in the next few months, Wall Street will closely monitor whether these investments are starting to yield results.<\/p>\n<p>\u201cGen AI has emerged as the top priority for \u2063(chief information officers) and Microsoft is uniquely well positioned, with the \u2062majority of CIOs expecting to\u200b use a Microsoft \u200dAI product in the next 12 months,\u201d Morgan Stanley analyst Keith Weiss stated in a note dated Jan. 11.<\/p>\n<p>Over the past three months, Microsoft has widely introduced its flagship AI tool, the $30-a-month &#8220;Copilot,&#8221; for\u200c its Microsoft 365 service. This tool can draft \u200cemails, create presentations,\u200b and compile meeting highlights.<\/p>\n<p>Jefferies analyst Brent\u200b Thill stated in a research note, \u201cWe expect AI contribution to Azure growth to \u200bincrease, with our checks pointing to strong demand for Azure AI services.\u201d<\/p>\n<p>\u201cIt\u2019s worth highlighting that we expect the situation at OpenAI will have \u200da minimal impact, \u200bif any, on Azure\u2019s AI contribution in (the second quarter),\u201d he added.<\/p>\n<p>The growth of Microsoft&#8217;s cloud business is also accelerating as customers anticipate utilizing its AI services and purchase computing power accordingly. This has enabled Azure to gain market \u2062share as it competes with Amazon.com&#8217;s AWS and Alphabet&#8217;s Google Cloud.<\/p>\n<p>Microsoft projected a 26% to 27% growth for \u200cAzure in the\u200b second\u200d quarter ending on Dec. \u200c31. Analysts from Visible Alpha anticipate a 27.7% growth for Azure.<\/p>\n<p>\u201cIt\u2019s\u2064 too\u200d early \u2062to be modeling revenue contribution from \u2064GenAI\u2062 before 2025 for any software company not named Microsoft,\u201d stated RBC Capital Markets analyst Rishi \u2062Jaluria.<\/p>\n<p>In October, Microsoft announced that it expects its gross margin for the cloud\u200c business in \u2064the December quarter to remain mostly flat compared to the \u2064previous year, as it invests in expanding its AI infrastructure to meet the\u200b growing demand. According \u200bto LSEG, operating expenses in the second quarter are expected to experience the most significant surge in five quarters.<\/p>\n<p>A recovery in the personal computers market is \u2062anticipated to drive\u200d revenue growth in Microsoft&#8217;s Windows and devices business to its highest level in four years.<\/p>\n<p>For its Windows-based business segment, which includes the recent acquisition of gaming firm Activision, the company forecasts a sales growth of approximately 16% to 19% in\u200b the second quarter. Last week, Microsoft announced that \u200cit would be letting go of 1,900 employees at Activision.<\/p>\n<p>In \u200cconclusion, Microsoft&#8217;s remarkable surge in quarterly \u200crevenue can be attributed to the increasing adoption of its generative \u2064AI products and growing demand for \u200bits cloud services. With its early lead in artificial intelligence, Microsoft is set to solidify its position as the \u200blargest company by market value. The upcoming\u200b results will provide insights \u2064into the success of Microsoft&#8217;s investments in AI technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>January 29, 2024 \u2013 6:18 AM PST (Reuters) \u2013 Microsoft (MSFT.O) anticipates a 15.8% surge in quarterly revenue, marking its strongest growth in almost two years. The increasing popularity of its generative AI-powered products is driving demand for its cloud services. Microsoft&#8217;s early advantage in artificial intelligence positions it favorably<\/p>\n","protected":false},"author":1911,"featured_media":2162012,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2162011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2162011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2162011"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2162011\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2162012"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2162011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2162011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2162011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}