Microsoft onto Azure thing with AI growth

MICROSOFT saw its share price fall after announcing its first-quarter results last week, despite another strong set of numbers.

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AARIN CHIEKRIE SENIOR ANALYST Hargreaves Lansdown www.hl.co.uk

Markets were disappointed that Azure growth came in slightly below very high expectations. Still, 39% growth is exceptional, and the underlying message is positive. Demand for Al is so strong that Microsoft can’t build capacity fast enough.

Microsoft's first-quarter revenue was up 17% to $77.7bn. Al services are delivering a big and growing chunk of Azure’s growth — a trend that’s expected to continue. It was also pleasing to see ongoing growth in non-Al-related demand for Microsoft's cloud offering, which is still a key part of the mix.