Latest news with #cloud computing
Free Malaysia Today
31-07-2025
- Business
- Free Malaysia Today
Big Tech may be breaking the bank for AI, but investors love it
AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter. (Freepik pic) NEW YORK : Big Tech is spending more than ever on artificial intelligence (AI) – but the returns are rising too, and investors are buying in. AI played a bigger role in driving demand across internet search, digital advertising and cloud computing in the April-June quarter, powering revenue growth at technology giants Microsoft, Meta and Alphabet. Betting that momentum will sustain, Microsoft and Alphabet decided to ramp up spending to ease capacity shortages that have limited their ability to meet soaring AI services demand, even after several quarters of multi-billion-dollar outlays. 'The results offer the clearest sign yet that AI is emerging as a primary growth engine, although the monetisation journey is still in its early days,' investors and analysts said. The upbeat commentary also bodes well for the largest US cloud provider, which will report earnings today after markets close, and underscores how surging demand for the new technology is shielding the tech giants from tariff-driven economic uncertainty hobbling other sectors. 'As companies like Alphabet and Meta race to deliver on the promise of AI, capital expenditures are shockingly high and will remain elevated for the foreseeable future,' said Debra Aho Williamson, founder and chief analyst at Sonata Insights. However, if their core businesses remain strong, 'it will buy them more time with investors and provide confidence that the billions being spent on infrastructure, talent and other tech-related expenses will be worthwhile,' she added. Microsoft shares rose about 9% in premarket trading today, putting the Windows maker on track to cross US$4 trillion in market value – a milestone only chip giant Nvidia NVDA.O has reached so far. Meta was up even more, rising 11.5% and on course to add nearly US$200 billion to its market value of US$1.75 trillion. Amazon gained over 3%. All the companies have faced intense scrutiny from investors over their ballooning capital expenditures, which were expected to total US$330 billion this year before the latest earnings. Until a few days ago, the Magnificent Seven stocks were also trailing the S&P 500 in year-to-date performance. Silencing doubts Microsoft said yesterday it would spend a record US$30 billion in the current quarter, after better-than-expected sales and an above-estimate forecast for its Azure cloud computing business showcased the growing returns on its massive AI bets. The prediction puts Microsoft on track to potentially outspend its rivals over the next year. It came after Google-parent Alphabet beat revenue expectations and raised its spending forecast by US$10 billion to US$85 billion for the year. Microsoft also disclosed for the first time the dollar figure for Azure sales and the number of users for its Copilot AI tools, whose adoption has long been a concern for investors. It said Azure generated more than US$75 billion in sales in its last fiscal year, while Copilot tools had over 100 million users. Overall, around 800 million customers use AI tools peppered across Microsoft's sprawling software empire. 'It's the kind of result that quickly silences any doubts about cloud or AI demand,' said Josh Gilbert, market analyst at eToro. 'Microsoft is more than justifying its spending.' Other AI companies have also attracted a clutch of users. Alphabet said last week its Gemini AI assistant app has more than 450 million monthly active users. OpenAI's ChatGPT, the application credited with kicking off the generative AI frenzy, has around 500 million weekly active users. Meta, meanwhile, raised the bottom end of its annual capital expenditure forecast by US$2 billion, to a range of between US$66 billion and US$72 billion. It also said that costs driven by its efforts to catch up in Silicon Valley's intensifying AI race would push 2026 expense growth rate above 2025's pace. Better-than-expected sales growth in the April-June period and an above-estimate revenue forecast for the current quarter, however, assured investors that strength in the social media giant's core advertising business can support the massive outlays. 'The big boys are back,' said Brian Mulberry, portfolio manager at Zacks Investment Management, which holds shares in all three major US cloud providers. 'This simply proves the Magnificent Seven is still magnificent at this moment in time,' Mulberry said.
Yahoo
30-07-2025
- Business
- Yahoo
Western Digital beats quarterly revenue estimates on strong data storage demand
(Reuters) -Western Digital beat expectations for fourth-quarter revenue on Wednesday, benefiting from strong orders for its data storage products as enterprises adopt cloud computing, sending its shares up more than 4% in extended trading. Demand for Western Digital's storage devices has surged due to the widespread adoption of artificial intelligence, which makes use of data centers requiring infrastructure to hold large amounts of data for training. For the quarter ended June 27, the company reported revenue of $2.61 billion, beating estimates of $2.47 billion, according to data compiled by LSEG. Western Digital forecast first-quarter revenue of $2.70 billion on an adjusted basis, plus or minus $100 million. Analysts expect $2.54 billion. It forecast adjusted earnings per share of $1.54, plus or minus 15 cents, while analysts expect $1.38 per share. Sign in to access your portfolio
Argaam
24-07-2025
- Business
- Argaam
GO Telecom inks framework pact with Syrian communications ministry
Etihad Atheeb Telecommunication Co. (GO Telecom) signed today, July 24, a five-year framework agreement with Syria's Ministry of Communications and Technology. The project's total value is expected to reach SAR 1.96 billion, the telco said in a statement to Tadawul. The agreement aims to enhance Syria's digital infrastructure through two data centers, a cybersecurity hub, cloud and disaster recovery systems, and a tech platform to support digital transformation. GO Telecom will train and qualify a ministry-appointed team to manage the project, in line with the technical specifications and obligations outlined in the agreement. The financial mechanism will be executed through separate contracts with the funding entity, GO Telecom noted, adding that the impact cannot yet be assessed and updates will be provided in due course. The actual scope, value, and payment schedule will be determined through work orders added to the agreement later.
Yahoo
24-07-2025
- Business
- Yahoo
Shares in Google parent Alphabet rise after capex plans boost
MILAN (Reuters) -Alphabet shares rose 2.5% in early European trading on Thursday after the Google parent company raised its capital spending plans, following a strong beat of Wall Street estimates for quarterly revenue and profit. On Wednesday, the search giant cited surging demand for its cloud computing services as it increased its capital expenditure forecast for the year to about $85 billion from $75 billion, and signalled a further rise in 2026.
Yahoo
24-07-2025
- Business
- Yahoo
Shares in Google parent Alphabet rise after capex plans boost
MILAN (Reuters) -Alphabet shares rose 2.5% in early European trading on Thursday after the Google parent company raised its capital spending plans, following a strong beat of Wall Street estimates for quarterly revenue and profit. On Wednesday, the search giant cited surging demand for its cloud computing services as it increased its capital expenditure forecast for the year to about $85 billion from $75 billion, and signalled a further rise in 2026. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
