Big Tech's AI Promises Tempered by Investor Demands for Near-Term Profits
-
Microsoft, Google, and AMD touted AI progress in earnings reports, but investors wanted more tangible financial results.
-
Microsoft Azure cloud growth was boosted by AI, with a 6 percentage point contribution vs 3 points last quarter. But unclear how much AI will drive future growth.
-
Google search ads slowed, raising concerns about its ability to fund ambitious AI plans as Microsoft threatens in AI.
-
AMD said its new AI chips will generate over $3.5 billion in sales vs prior $2 billion forecast. But some hoped for as much as $8 billion.
-
Investors have bid up shares of AI leaders to high valuations, expecting a profit bonanza, but actual financial payoff remains uncertain so far.