Microsoft Earnings Jump on AI

April 26, 2024 By E.J. Smith - Your Survival Guy

By seanzheng @Adobe Stock

The WSJ Reports:

The Redmond, Wash., company has been ramping up its spending on data centers and other infrastructure to host the rising AI demand. That spending has sent some of Microsoft’s capital expenditures soaring.

Microsoft said its capital expenditures were $14 billion last quarter, a marked increase from the $11.5 billion the company spent the preceding quarter.

On a conference call after earnings were announced, Chief Financial Officer Amy Hood said that the company will continue to increase spending.

She said the customer demand for AI services is beyond what Microsoft is able to provide, pushing the company to pour more money into building its infrastructure.

Microsoft projects revenues of between $63.5 billion and $64.5 billion in the quarter through June.

Microsoft’s AI success has helped push its market value above $3 trillion this year. It has surpassed Apple’s, making it the world’s biggest company by that measure.

Over the past 12 months, its stock has climbed 45%, while the Nasdaq Composite Index rose 32% and Apple shares gained 4%.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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