new york -Tech Giants Microsoft and Meta Platforms facilitated a US$500 million (S$648 billion) rally on AI stock on July 30th after quarterly results showed that a massive investment in artificial intelligence paid off.
In extended trade, Microsoft jumped 8%, while Meta surged 9%, with two spectacular seven companies increasing market values of US$288 billion and US$152 billion, respectively.
Nvidia, the dominant AI chip maker, the world's most valuable company, rose 1%, while Amazon, reporting its results on July 31, added more than 2%.
Meta has raised the lower annual capital expenditure cap to US$2 billion thanks to the promotion of “ultra-intelligence” high stakes in heated AI races. Currently, we expect spending to be between US$66 billion and US$72 billion.
Parents of Facebook and Instagram forecast third-quarter revenues of between US$47.5 billion and US$50.5 billion, well above Wall Street estimates, as AI continues to strengthen its core advertising business.
The Microsoft forecast for July 30 shows a quarterly report that saw its current first quarter capital expenditure record of US$30 billion and has won Azure Cloud-Computing Business Powering, showing revenues exceeding expectations on Wall Street and increasing returns on AI bets.
Microsoft's capital expenditure forecasts – the biggest ever in one quarter – have set it on track to be likely to surpass its rivals for next year. After Google said it would spend more on data centers to meet the demand for AI services, Meta increased sales with only a modest increase in spending.
The resulting trio will help solve investors' questions about whether big technology is benefiting from large data center build-outs. 2025.
Microsoft's Cloud Business is off to a head start in cloud computing, sparking market leader Amazon Web Services, which has brought US$1075.6 billion in its most recent fiscal year. However, investors said Microsoft's new revenue figures indicate that the investment is leading to increased sales.
Revenues from rival Alphabet showed an increase in AI spending last week, but so did returns as they beat revenue estimates and raised their USD 10 billion spending forecasts.
Microsoft says spending is important to overcome supply constraints that hinder the ability to meet the rising demand for AI. In the fourth quarter of the fourth quarter, capital expenditures rose 27% to US$24.2 billion.
The company has emerged as an early leader in making money from AI thanks to Openai's exclusive access to technology. The partnership has helped many businesses to attract cloud services, allowing Microsoft to quickly deploy AI products such as the M365 Copilot AI Assistant for Enterprises.
Microsoft is not just USD 200 billion to become the second company after reaching a valuation of USD 4 trillion after Nvidia. 2025.
But investors' suspicions are rising about Openai's partnership as companies renegotiate deals and startups shift several workloads to rivals, including Google and Oracle.
According to media reports, the two say that if Openai converts to Public-Benefit Corporation, Microsoft is stuck on Openai's technology and the amount of access it holds in its stake.
Microsoft has attempted to reduce its dependence on Openai by developing its in-house AI technology, expanding its model lineup with partners such as Xai, Meta and France's Mistral, and hosting models on Azure for clients. Reuters
