Microsoft's AI Adoption Could Potentially Challenge Amazon's Lead In Cloud Computing: Report

Microsoft is expected to showcase a significant performance in the upcoming quarterly results. The company is expected to surpass Amazon in the cloud computing market, according to a media report on Thursday.

Microsoft has been recently attracting most businesses with a clutch of its Gen AI features that are powered by OpenAI’s technology. The tech major is emerging as the toughest competitor and has beaten its rivals Google and Amazon with its new AI services, including the Copilot, which was rolled out in November last year.

The report highlighted that Microsoft's upcoming financial results will provide additional evidence of its AI integration and it is expected to have an impact on the technology stocks. These stocks are already anticipated to be influenced by various factors in the US markets, such as interest rates and more.

Wall Street analysts are optimistic about Microsoft’s growth. The company had taken Apple’s position as the world’s most valuable firm earlier this year. Additionally, the OpenAI investor has also pumped billions of dollars in generative AI, attracting a large number of consumers to its Azure cloud-computing service.

Meanwhile, in the first three months of 2024, Microsoft’s revenue is expected to surge by 15 per cent and Alphabet’s by 12.6 percent. Amazon may showcase 11.9 per cent of profits, which could be one of its worst earnings in comparison to its last three years.

Additionally, Azure the cloud unit of Microsoft is predicted to have grown by 28.9 per cent in the first quarter of 2024.