Microsoft, Alphabet Under Pressure to Show AI Earnings Boost
- Investors looking for clarity on when AI will drive revenue
- Both stocks have soared on the back of AI-related fervor
Microsoft has rolled out AI-supported assistant services related to its OpenAI investment.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
For about a year, investors have bid up megacap tech shares on the theory that their exposure to artificial intelligence will usher in a new era of elevated growth and efficiency. Now the companies need to prove it.
Microsoft Corp. and Alphabet Inc., two of the biggest players in AI-related software, will report after the market close, and Wall Street wants a stronger sense of when the rally-driving technology will start moving the needle for earnings and revenue. Both stocks have been supported by AI excitement; Microsoft is above a historic $3 trillion valuation, while Google’s parent company returned to all-time highs.