Despite the reduction in demand for computing infrastructure resulting from deep chic and Trump tariffs, Microsoft (MS) and Meta have excelled over the past quarter market. Consequently, unlike the encircling concerns, he repeatedly said that he would speed up the investment of artificial intelligence (AI).
Microsoft announced on Wednesday that the corporate’s sales of AI services increased by 13% to $ 70.1 billion (about 100.35 trillion won), up 13% from the identical period last yr. Net profit reached $ 25.8 billion, up 18%.
Double cloud computing service sales rose 20% yr -on -year to $ 42.4 billion (about 61 trillion won). The stock price surged as much as 9%in over time transactions.
Specifically, Satia Nadella, CEO of Satia, recently refuted the evaluation that Microsoft canceled a brand new data center lease agreement and reduced the demand for AI. He found a knowledge center in 10 countries last quarter, and explained that “some cancellation is meant to balance regional balance as demand increases elsewhere.”
In reality, Microsoft announced that the quarterly investment was $ 21.4 billion, a rise from $ 14 billion in the identical period last yr.
Amy Hood MS CFO said, “We expect to give you the chance to balance the provision and demand by this quarter, however the demand has increased greater than expected.”
He also identified that the expansion of the AI ​​infrastructure is just not a matter of responding to the short term. “It often requires an extended time of two to seven years before buying land and constructing a knowledge center,” he said.
On the identical day, Meta announced that it could increase AI investment.
In his earnings announcement, Meta said, “We’ll raise the annual capital expenditure forecast from $ 60 billion to $ 65 billion to $ 64 billion to $ 72 billion resulting from the rise in additional data center investment and infrastructure hardware expected costs.”
That is resulting from the rise in equipment prices resulting from tariffs, which implies that it should meet the present investment despite the rise in costs.
It was predicted that the tariff could reduce promoting revenue, but Meta also achieved exceeding expectations. 1Q sales increased 16% yr -on -year to $ 42.3 billion, and net profit rose 35% to $ 16.7 billion. Meta’s stock price rose greater than 5% in over time.
Mark Zuckerberg, CEO, stressed within the conference call that “we’re doing excellent results and are in a great location for macroeconomic uncertainty.”
By Park Chan, reporter cpark@aitimes.com
