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May 1, 2025 | Tech & Markets Desk
Meta and Microsoft announced strong quarterly earnings, sparking renewed optimism on Wall Street and boosting AI-related companies while increasing investor confidence in the AI boom.
Microsoft profited from the continuous expansion in its Azure cloud service, which has seen an increase of 33% in cloud revenues compared to the previous year. A large portion of this increase is due to growing expectations in AI services. These include services created by Microsoft’s collaboration with OpenAI. Microsoft shares increased to more than 6 percent. It continued to rise by more than 6% after hours trading.
Meta has also impressed investors with its impressive advertising revenues that the company attributes to AI-powered delivery systems for ads that improve targeting and engagement. Meta’s stock increased by over 4% after the announcement of earnings. Meta has also announced plans to dramatically increase its capital expenditures by 2025, estimating a range of $64 billion to $72 billion primarily to build its AI infrastructure and data centers.
The good earnings report was a positive influence across the tech industry. Other big companies in the AI sector included Nvidia, AMD, and Amazon. Notably, AMD witnessed a rise in share prices due to investors’ focus on AI and cloud technology.
But some analysts are skeptical. The huge capital expenditures needed to keep up with an edge in AI capabilities raise doubts about their future viability. However, in the short run, the results show how crucial AI is now in the strategies of large technology firms.
Businesses are increasingly integrating artificial intelligence into their services, products, and core operations. Investors appear ready to reward companies that scale effectively and drive innovation in the AI sector.
As of now, Meta and Microsoft have proved this AI revolution isn’t simply a fantasy; it’s already producing tangible, quantifiable outcomes.
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