AI Showdown: Alphabet vs. Microsoft
Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) are key players in the artificial intelligence (AI) sector, each adopting distinct strategies. Microsoft holds a 27% stake in OpenAI and leverages multiple generative AI models through its Azure platform, while Alphabet has developed its own generative model, Gemini, which now outperforms many competitors, including ChatGPT.
In their latest quarterly earnings, Microsoft reported a 17% revenue increase year-over-year with diluted earnings per share (EPS) rising 60%, largely due to its investment in OpenAI. In comparison, Alphabet achieved 18% revenue growth and a 31% increase in EPS. Notably, Google Cloud’s revenue soared 48% year-over-year, surpassing Azure’s growth of 39%. Despite Alphabet’s strong growth, Microsoft’s more attractive valuation post-Q2 earnings sell-off positions it as the better buy currently.
