Microsoft and Amazon reported surging cloud revenue, pushing their stocks higher and easing investor concerns over AI spending returns.
Shares of Microsoft, Amazon, and Meta surged after strong earnings highlighted robust growth in artificial intelligence and cloud computing. Microsoft’s Azure revenue topped $100 billion annually for the first time, with 43% growth in its fourth quarter. Amazon’s AI and chip businesses reached a $25 billion annual run rate, while Meta recovered losses after a mixed quarterly report.
The results provided relief amid skepticism over hyperscalers’ heavy AI infrastructure investments. Microsoft also announced plans to extend data center lifespans, shifting leases to reduce capital expenditures. Amazon’s market capitalization surpassed $3 trillion for the first time, reflecting investor confidence in its AI-driven expansion.
Stocks climbed sharply, with Meta rising over 7% and Microsoft and Amazon each gaining more than 5%. The rally underscored renewed optimism in the sector’s ability to monetize AI advancements.