Microsoft reported strong Q3 FY26 results, surpassing revenue and EPS expectations with an 18% revenue increase and EPS of $4.27 versus $4.06 expected. Azure, its cloud platform, grew 40%, and AI-related revenue surged 123% year-over-year, highlighting robust demand. Despite these gains, Microsoft faces rising capital expenditures projected at $190 billion for 2026, with capacity limits slowing Azure's growth. Shares have dropped 27% from their peak and trade below the 15-year average P/E, even as EPS is forecasted to grow nearly 19% through FY28. The analyst sees the current share price decline as disconnected from the company's strong fundamentals and is increasing exposure aggressively.
The AI industry is expected to grow strongly through 2027, driven by major investments from leading companies like Alphabet, Meta, and NVIDIA. Taiwan Semiconductor (TSM) is seen as the critical indicator of AI demand because it manufactures chips for...
Since late 2022, Big Tech has committed around $750 billion to AI infrastructure, leading to targeted layoffs, especially in companies like Meta. Despite these job cuts, overall U.S. employment remains strong, and S&P 500 companies continue to grow d...
The Magnificent 7, a group of leading megacap tech companies including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, represent the forefront of AI and future tech. While most have advanced AI integration and partnerships, Microsoft has...
Airia has introduced a new Model Risk Management (MRM) solution integrated with Microsoft Foundry, designed to help enterprises continuously validate and monitor autonomous AI systems. This solution addresses the growing challenges of shadow AI and r...
In Q1 2026, Baron Opportunity Fund initiated a position in Alphabet Inc., recognizing its value as a leading tech company. The fund also highlighted ASML's strong pricing power and growth potential, and positive outlook for Rubrik's market share and ...
