Microsoft and Alphabet, both members of the “Mag 7” tech group, are significantly investing in AI, reporting substantial earnings and capital expenditures. Microsoft announced adjusted earnings per share (EPS) of $4.14, up 24% year-over-year, alongside sales of $81.3 billion, a 17% increase. For the latest period, Microsoft’s capital expenditures (CapEx) totaled $37.5 billion, with $29.9 billion allocated for property and equipment to support Azure demand.
Similarly, Alphabet posted an adjusted EPS of $2.82, reflecting a 31% year-over-year growth, and sales growth of 18%. Notably, Google Cloud revenues surged by 48% to $17.7 billion, driven by the increasing adoption of Google Cloud Platform. Alphabet’s CapEx guidance for the year is set at a midpoint of $180 billion, marking a significant commitment to future growth in the AI sector.
