Microsoft's Azure cloud-computing business shows 31% growth, while AI spending rises 53% to $13.64bn, raising concerns about data center returns.
Microsoft's Azure cloud-computing business is expected to show steady 31% growth between April and June, but investors are closely monitoring the company's AI spending to see if it justifies increased capital expenditure. Microsoft's AI-related spending is expected to rise 53% year-over-year to $13.64bn in the period, raising concerns about potential low returns on investments in data centers. Investors are eager to see if Microsoft can continue accelerating revenue growth in AI segments and balance rising capital expenditure.
July 29, 2024
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