Alphabet and Microsoft Stocks Surge Driven by AI Investments
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Alphabet and Microsoft Stocks Surge Driven by AI Investments

Share prices of major tech companies Google and Microsoft surged on Friday, driven by significant investments in artificial intelligence (AI) that yielded immediate financial returns.

The competition for AI supremacy intensifies as U.S. tech giants strive to establish themselves as leaders in developing generative AI (GenAI) technology. Microsoft’s stock rose by 3.84% due to increased AI adoption within its cloud services, bolstered by access to OpenAI technology. This AI integration has resulted in a 31% revenue boost for Azure, as reported by Reuters.

Meanwhile, Alphabet, Google’s parent company, saw its shares climb by 11.5%, positively impacting other Big Tech firms such as Amazon, Apple, Nvidia, and Meta, which experienced stock increases ranging from 1% to 3%. This is in stark contrast to Meta’s assertion that AI advancements may take years to materialize. In February 2024, Nvidia also reported substantial earnings growth driven by AI success.

Alphabet is approaching a market valuation of $2 trillion, having exceeded quarterly estimates. The company’s investors recently received their first dividend alongside a $70 billion stock buyback plan.

Currently, Microsoft leads in AI spending, followed by Alphabet with $14 billion, and Meta with $6.4 billion, which has not translated into a similar market value increase.