AI’s Grip on Tech Set for Test With Microsoft, Alphabet Earnings
- Powerful 2023 rally has bloated Microsoft, Alphabet valuations
- Meta, Snap also set to report in the week, with AI in focus
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Bets that artificial intelligence will revolutionize Corporate America and deliver riches to the biggest companies behind it will get a test Tuesday, as Microsoft Corp. and Alphabet Inc. report their first earnings since AI fever broke out.
Microsoft’s shares have soared 45% in 2023, hitting multiple records in a rally that has left it on the cusp of joining Apple Inc. as the only two companies with market valuations of $3 trillion. Alphabet’s rally stands at 39%, slightly under the Nasdaq 100 Index’s 41% gain. Both are among the early leaders in publicly traded tech behemoths with promising AI tools.