Microsoft plans to expand its data center capacity to 10GW by fiscal year 2026, which is expected to accelerate cloud revenue growth by 12.4% to 21.3%, supported by the Anthropic Azure AI Foundry partnership. However, the company's aggressive capital expenditure, projected to reach $190 billion by the end of 2026, carries a negative return on investment of -9.3%, indicating potential overpayment for growth. Additionally, increased depreciation and amortization costs from AI infrastructure investments may reduce EBIT margins by 500 basis points in the coming years. Despite a slight valuation discount, technical analysis suggests possible stock downside ahead.
In Q2 2026, top contributors to growth included Taiwan Semiconductor Manufacturing, Alphabet, United Rentals, Apple, and Visa. Alphabet’s Google Search and Cloud segments showed robust revenue growth of 19% and 63%, respectively, boosting operating i...
Microsoft is instructing its sales team to highlight the efficiency and cost advantages of its own AI models compared to competitors like OpenAI, Google, and Anthropic. This shift comes as Microsoft replaces some third-party AI models in apps like Wo...
The SPDR NYSE Technology ETF (XNTK) has significantly outperformed the Invesco QQQ Trust (QQQ) over the past year, returning 51.65% compared to QQQ's 28.43%. XNTK uses an equal-weight approach focusing solely on about 35 tech leaders, capturing broad...
Jim Cramer cautioned that the recent rally in Big Tech stocks like Alphabet, Microsoft, Meta, and Amazon might be more about investor optimism than real improvements in their business fundamentals. Despite positive news such as Warren Buffett's endor...
Microsoft fixed a major security vulnerability in the remastered Age of Empires II that could let hackers take control of a victim's computer by sending a malicious game invite. The flaw, discovered with AI assistance, allowed remote code execution i...
