Microsoft, Google beat earnings expectations amid AI frenzy
- Net profit for Microsoft was US$20.1 billion in the April to June period, up 20 per cent year-on-year, while the company posted US$56.2 billion in quarterly sales
- Google parent Alphabet reported net income of US$18.7 billion on revenue of US$74.6 billion in the recently ended quarter
Tech titans Google and Microsoft announced better-than-expected earnings on Tuesday as the frenzy over artificial intelligence (AI) stokes investor excitement and breathes a new life into the sector.
The release of ChatGPT last year landed as technology giants were embarking on major lay-offs and cost-cutting plans, with share prices hammered after flying high during the coronavirus pandemic.
For the second consecutive quarter, Microsoft has more than reversed the trend, seeing profits and sales soaring to the highest levels ever for the 48-year-old company co-founded by Bill Gates.
An earnings statement reported that net profit for Microsoft was US$20.1 billion in the April to June period, up 20 per cent year-on-year and above expectations.
The company posted US$56.2 billion in sales, which also beat expectations, though the growth slowed from the previous quarter.