Microsoft returns to the podium with AI

Just a few weeks after Nvidia crossed the $4 trillion mark in stock market value, Microsoft is matching the bet. In both cases, thanks to artificial intelligence, in which they have invested heavily and which is propelling them to the top of the Wall Street rankings. The push also extends to Meta (Facebook), which is approaching $2 trillion, a level already surpassed by Google and Amazon.

Together, Microsoft, Google, Amazon, and Meta have announced investments worth $400 billion this year in building AI infrastructure. A staggering figure, which, as the United States has pointed out, exceeds the European Union's defense spending in 2024.

Big Tech 's strong commitment to artificial intelligence had raised doubts about whether the markets would consider it viable. It's now clear that they would, although some experts warn about excessive stock market exposure to the miracles of AI and suggest that a new tech bubble may be brewing. This is not the opinion of Microsoft CEO Satya Nadella, for whom "the cloud and artificial intelligence are the driving force of business transformation across all industries and sectors," as he emphasized last Wednesday during the company's earnings presentation.

Tech bubble? Microsoft is doubling down on artificial intelligence and its stock market is soaring, despite fears of a dangerous overvaluation.

In its 50-year history, Microsoft has reinvented itself to remain at the technological top with its Windows operating system, active on more than 1 billion devices, according to the company, and has become omnipresent with its business tools, hardware, and gaming. Now, its cloud computing unit is the fastest-growing. According to the latest results presented, Azure, its largest cloud computing business, has achieved revenues of $75 billion, representing a 34% growth. It is thus rapidly approaching its main rival in this business, Amazon Web Services, which earned $107 billion last year.

Headquartered in Redmond, Washington, Microsoft was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. Gates quickly negotiated licensing rights for its operating system and grew rapidly with its introduction into IBM personal computers, which were very popular at the time. Its market dominance grew thanks to Windows and it managed to withstand and survive the major antitrust trials of the 2000s. In the 2010s, it invested heavily in cloud infrastructure, transforming its Azure cloud division into an increasingly competitive rival to Amazon Web Services.

The race for AI is clearly benefiting major US technology companies, and their large investments aren't currently penalizing them on the stock market—quite the opposite. Microsoft announced this week that it is doubling down and will invest a record $30 billion this quarter. It also revealed that Copilot, its intelligent chatbot, already has around 100 million monthly active users, although around 800 million interact with this tool through its software empire.

Chief Executive “Cloud and AI are driving transformation across all industries,” says Satya Nadella.

The company's strong results contributed to its rise on the stock market. Nadella announced a profit of $101.8 billion for the fiscal year, a 15% increase, well above analysts' expectations. The company's revenue reached $281.7 billion, also up 15%.

Meta, for its part, has followed in Microsoft's footsteps and is betting heavily on artificial intelligence. The owner of Facebook, WhatsApp, and Instagram announced a 36% increase in profits in the first half of the year, reaching $35 billion. Mark Zuckerberg's company saw revenue reach $90 billion in that period, a 20% increase compared to the first half of 2024.