How Google and Microsoft hit the artificial intelligence market: review of quarterly reports
Statistics show that quarterly reports from companies related to artificial intelligence disappointed investors and sent shares lower.
Quarterly results review: losses in the artificial intelligence market
Google's revenue fell below expectations
Agency reports Reuters, AI companies have collectively lost about $190 billion in market capitalization. Shares of Alphabet, Google's parent company, fell 5.6% as December advertising revenue fell short of investor expectations. While total ad revenue reached $9.2 billion, up 15% from last year, the company noted that AI data center spending will increase, making competition with Microsoft more intense. Google's total revenue was $86 billion last quarter.
Microsoft poses serious competition
Despite Google Cloud revenues exceeded Wall Street expectations, with strong growth driven by interest in Microsoft's artificial intelligence. Microsoft's total revenue last quarter beat analysts' expectations at $62 billion. New artificial intelligence features have attracted customers to Microsoft's cloud services and Windows services. Microsoft shares fell 0.7% after the report was published.
Microsoft reaches trillion market capitalization for the first time
Interest in artificial intelligence helped Microsoft become the first company whose market capitalization exceeded $3 trillion and overtake Apple.
Advanced Micro's expectations fell short
Shares of chip maker Advanced Micro fell 6%, as its first-quarter revenue guidance missed expectations.
Nvidia stock losses
Nvidia shares, which were up 27% in January last year on the back of breakthrough growth in artificial intelligence, also fell partly (-2% ) in extended trading.
Super Micro Computer shares plummet
Shares of server component maker Super Micro Computer, which has also benefited from increased demand for artificial intelligence, fell by more than 3 %.
Answers to questions:
The fall in shares of companies related to artificial intelligence was caused by investor disappointment after the tech giants' quarterly reports.
AI companies, including Alphabet, Microsoft and others, lost a total market capitalization of about $190 billion.
Despite Google Cloud's revenue growth, Microsoft's Azure saw faster growth thanks to interest in artificial intelligence. Both tech giants posted strong quarterly earnings, but Alphabet and Microsoft shares still fell.
- Alphabet is the mother company of Google, developing artificial intelligence and other technological products.
- Microsoft is one of the largest technology companies developing software and cloud services.
- Google is a search engine and technology company that is part of Alphabet.
- Azure is a cloud-based artificial intelligence platform from Microsoft.
- Google Cloud - cloud services from Google, including data storage and computing resources.