Microsoft’s AI Spending Tops $100 Bn as Earnings Soar Past Expectations
Microsoft is betting big on the future of artificial intelligence—investing over $100 bn in capital expenditures for the coming year, while raking in stronger-than-expected earnings that sent its stock soaring, reports the Guardian.
Microsoft, now the world’s second-most valuable company, reported blockbuster fiscal Q4 results on Wednesday, surpassing Wall Street expectations for the fifth consecutive quarter. The company posted $76.4 bn in revenue, an 18% year-over-year jump, and earnings per share of $3.65, beating analyst estimates of $73.81 bn and $3.37, respectively.
As demand for cloud computing and AI infrastructure skyrockets, Microsoft says it will boost capital spending by 14% to more than $100 bn in fiscal 2025. CEO Satya Nadella noted that the company’s Azure cloud division now generates over $75 bn annually, up 34% from last year.
«Cloud and AI are the driving force of business transformation across every industry,» Nadella said. «We’re innovating across the tech stack to help customers adapt and grow in this new era.»
The company’s stock jumped more than 7% in after-hours trading and is up 22% year-to-date, nearing a record $513 per share.
The move places Microsoft in lockstep with rivals like Alphabet, which plans $85 bn in capital spending this year, and Amazon, targeting $100 bn, as tech giants battle for AI dominance.
Industry analysts like Wedbush’s Dan Ives see a massive valuation wave ahead.
«This was a slam-dunk quarter for Microsoft. AI is transforming every industry, and Microsoft is at the center of this revolution,» he said, predicting a $5 trillion valuation within 18 months.
Beyond infrastructure, fierce competition for AI talent is driving compensation packages sky-high. Microsoft is reportedly offering engineers up to $408,000 in salary, with stock awards exceeding $3 mln annually. Meanwhile, Meta and other rivals are offering multi-million-dollar bonuses to lure top talent from firms like OpenAI and Apple.
Kursiv Uzbekistan also repots that Ethereum (ETH) has surged 56% in the past month, but traders aren’t convinced a rally past $4,000 is coming soon.
