Microsoft Cloud Soars on AI Demand While Google Growth Slows

Microsoft's Azure cloud growth outpaced expectations, driven partly by AI services, but Alphabet's Google Cloud disappointed with slowing growth.

Wall Street is rewarding companies benefiting from AI tailwinds in the cloud as it drives demand for computing power.

Microsoft is gaining new Azure customers seeking AI capabilities like chatbots and report writing tools. It also benefits from its investment in OpenAI.

Alphabet's cloud growth slowed to its lowest rate ever, missing estimates, while its ad business did well. Executives cited cautious customer spending.

Investors are looking to AI to offset sluggish macro trends. Nvidia is expected to drive tech earnings growth thanks to booming AI hardware demand.