MSFT proves AI thesis via revenue growth outpacing costs and Azure acceleration; speaker holds and buys more.

You go look at Microsoft and Meta and Amazon. They're importing hundreds of billions of dollars of semiconductor equipment and telecom equipment and things of that nature. But Microsoft just posted $90 billion in quarterly revenue.

Their cloud business just hit a hundred billion in annualized revenue.

Now, Microsoft told a more reassuring story. Revenue hit 90 billion, up 18% and beating estimates by nearly 5%. Earnings came in at $4.81 per share, crushing the $424 consensus.

And the intelligent cloud segment grew 31.6%. Azure is accelerating, not decelerating. And Microsoft cloud revenue crossed 54.5 billion in a single quarter. This is one hyperscaler where AI spending is clearly translating into AI revenue right now unlike so many others.

So if you think about it, between Meta, Alphabet, Microsoft, and Amazon, we're looking at combined AI related capital expenditures approaching 500 billion in 2026 alone. Meta at 130 to 145 billion, Alphabet at 195 to 205 billion, and Microsoft and Amazon have not yet updated their guidance this week.

Microsoft is proving the thesis. Revenue is growing faster than costs and AI is clearly pulling customers onto Azour. Uh Microsoft $420, $430 a share right now. Wall Street favorites has a price target of $522, right?

So Wall Street likes Microsoft, but then you go look at some of these other spenders and they're like, "Yeah, we don't like that stock go down 10%."

I've got a ton of Apple. I got a ton of Microsoft. I'm going to got, you know, Amazon, Tesla, Alphabet. I think it's all great. I'm not selling any of this stuff. I'm buying more. I got a ton of Microsoft.