Microsoft revealed another big financial boost from AI

Microsoft stock traded positively as it reported strong third quarter financial results that were better than Wall Street predictions.

The company said its strong performance was mainly due to high demand in its cloud computing business, driven by a significant contribution from AI services.

Microsoft’s AI business is “orchestrating a new era of AI transformation”, according to Microsoft chief executive Satya Nadella.

OpenAI’s ChatGPT services use Microsoft’s cloud resources, and, it is proving to be a gamechanger for the Silicon Valley’s 1990s boom that established Windows and Office as industry standard brands.

Microsoft, meanwhile, has its own AI suite of products, that use OpenAI tech, and chief executive Satya Nadella highlighted success with the Microsoft Copilot as a driver of growth.

The company reported $61.9 billion of revenue, and, net income was up 20% from the same period last year to a total of $21.9 billion. Earnings per share (an important metric for investors) was reported at $2.94 per share.

All the key financials came in higher than the market had forecast.

Microsoft shares moved around 5% in ‘after hours’ trading following the results announcement.

“Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," Satya Nadella said in a statement.

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