{"id":612902,"date":"2026-07-31T05:37:28","date_gmt":"2026-07-31T05:37:28","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/612902\/"},"modified":"2026-07-31T05:37:28","modified_gmt":"2026-07-31T05:37:28","slug":"microsofts-41-billion-ai-bet-just-cleared-a-major-test-chart-of-the-day","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/612902\/","title":{"rendered":"Microsoft’s $41 billion AI bet just cleared a major test: Chart of the Day"},"content":{"rendered":"\n

Microsoft (MSFT<\/a>) poured another record sum into AI infrastructure. Its Azure cloud business is finally growing faster as well. <\/p>\n

Microsoft shares surged 15.5% Thursday, adding nearly $492 billion in market value \u2014 the biggest one-day gain by any company on record, topping Nvidia’s (NVDA<\/a>) $440 billion jump on April 9, 2025. <\/p>\n

Azure revenue jumped 43% last quarter<\/a>, its fastest growth in four years and well ahead of the roughly 40% Wall Street expected. Microsoft stock rose about 3% in late trading Wednesday after posting a 0.7% loss at the close. <\/p>\n

The acceleration came as quarterly capital expenditures<\/a> \u2014 spending on long-term assets such as data centers and equipment \u2014 surged 70% to $41 billion. <\/p>\n

Microsoft has been spending at a historic pace to add computing capacity, even as investors question how quickly Big Tech can earn a return on its enormous AI build-out<\/a>. <\/p>\n

This quarter provided the strongest evidence yet that the expansion is producing faster growth. <\/p>\n

The chart below shows Microsoft’s quarterly capital spending alongside Azure growth. The company spent slightly less than analysts expected, while Azure cleared its growth hurdle by more than 3 percentage points. <\/p>\n

\"Azure<\/a> Company filings, Yahoo Finance analysis <\/p>\n

The rest of the quarter backed that up. Overall revenue rose 18% to $90 billion, topping expectations of $87.7 billion, while adjusted earnings of $4.74 per share beat forecasts of $4.25. Operating income climbed to $40.6 billion. <\/p>\n

The response stands in contrast with Alphabet (GOOG<\/a>, GOOGL<\/a>), which delivered its own blockbuster cloud quarter<\/a> last week. <\/p>\n

Google Cloud revenue surged 82% as profitability widened, but Alphabet stock plunged 7% the following day \u2014 its worst session in more than two months \u2014 after the company raised its spending outlook. Strong growth was not enough to overcome fears about the bill. <\/p>\n

Microsoft faced the same test and received a very different verdict. Its stock jumped about 9% in after-hours trading. <\/p>\n

The company expects Azure growth to accelerate again next quarter, to roughly 45%, even as capital spending climbs above $50 billion. Demand still exceeds available supply, but Microsoft said new capacity is producing revenue almost immediately. <\/p>\n

“When we can make efficiency gains, they are quickly monetized in quarter,” CFO Amy Hood said. <\/p>\n

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared<\/a> or email him at jaredblikre@yahooinc.com. <\/p>\n

Click here for in-depth analysis of the latest stock market news and events moving stock prices<\/strong><\/a> <\/p>\n

Read the latest financial and business news from Yahoo Finance<\/strong><\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Microsoft (MSFT) poured another record sum into AI infrastructure. Its Azure cloud business is finally growing faster as…\n","protected":false},"author":2,"featured_media":612903,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,258763,18,19,17,305,5569,82],"class_list":["post-612902","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-azure-cloud","tag-eire","tag-ie","tag-ireland","tag-microsoft","tag-spending","tag-technology"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/117012977906822894","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/612902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=612902"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/612902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/612903"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=612902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=612902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=612902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}