The smart money has AI in its portfolio

Microsoft and Alphabet, the parent company of Google, have sent a resounding message to investors with their latest quarterly results: investments in artificial intelligence (AI) and cloud computing are yielding remarkable returns.

The companies exceeded Wall Street estimates, buoyed by a surge in cloud revenue driven in part by the exponential growth of AI services. This news ignited a surge in their respective stock prices, with Alphabet soaring as much as 17% and Microsoft gaining 6.3% in late trading on April 25.

As these tech giants continue to vie for dominance in the AI arena, investors are confronted with the undeniable importance of technology, particularly AI, in their investment portfolios.

Microsoft and Alphabet’s stellar performance underscores why every investor should consider integrating tech, specifically AI, into their investment mix.

Unprecedented growth trajectory

The surge in cloud revenue propelled by AI services epitomizes the unparalleled growth trajectory of the tech sector.

Microsoft’s Azure cloud platform reported a remarkable 50% growth in revenue, driven by robust demand for AI and machine learning services. The platform, with services like Azure Machine Learning and Azure Cognitive Services, has empowered businesses worldwide to leverage AI for diverse applications, from predictive analytics to natural language processing.

Companies like FedEx and Coca-Cola have utilized Azure AI to optimize supply chain operations and enhance customer engagement, driving efficiencies and gaining competitive advantages in their respective industries.

Similarly, Alphabet’s Google Cloud Platform experienced significant revenue expansion, with a substantial portion attributed to AI-related offerings such as