Alphabet and Microsoft reported strong earnings fueled by growing AI demand, even as the tech giants continue investing billions in data centers and cloud infrastructure.
Microsoft showed investors that it's able to grow rapidly while keeping spending in check.
Microsoft (MSFT.O) shares jumped more than 3% in after-hours trading, while Alphabet (GOOGL.
OpenAI generated $10 billion in revenue for Microsoft in the quarter ended Sept.
Microsoft lowered its 2026 capex forecast to $170 billion, down from $175 billion. CFO Amy Hood cited delays in third-party capacity as Wall Street scrutinizes returns on AI spending.
Software giant reports $36.6bn in profit, beating Wall Street expectations, as Azure cloud computing division grows 48%
CNBC's Jim Cramer said Wednesday that a select group of technology stocks are less vulnerable to economic pressures. He identified Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, SpaceX, Anthropic and OpenAI as companies that fit that description.