Microsoft Records Best Quartal Revenue Growth In Two Years

Microsoft will reportedly record a 15.8% spike in quarterly revenues,

JAKAFRTA - Microsoft will reportedly record a 15.8% increase in quarterly revenue, becoming the best growth in nearly the last two years. This growth is driven by the growing adoption of its enriched products with generative artificial intelligence, which increases demand for its cloud services.

Microsoft's first move in artificial intelligence is predicted to strengthen its position as the largest technology company by market value. With a valuation of up to 3 trillion (Rp47.4 quadrillion), Microsoft recently shifted Apple from its position as the most valuable company, a position Apple has held since 2011.

The results of its quarterly report scheduled for Tuesday January 30, are expected to provide a clearer view on the development of artificial intelligence (AI) this year. Investors have allocated large funds into AI technology by 2023, and Microsoft's performance will affect market sentiment related to this investment.

"Gen AI has emerged as a top priority for chief information officials (CIO) and Microsoft to have a very good position, with most CIO expecting to use Microsoft AI products in the next 12 months," said Morgan Stanley analyst Keith Weiss.

Microsoft has launched a "Copilot" for 30 US dollars per month for Microsoft 365 services, which assists in making email drafts, presentations, and summarizing meeting highlights. This is a significant step in expanding the use of artificial intelligence in various company services.

Jefferies analyst Brent Thill is also observing an increase in demand for Microsoft's Azure AI service, which is projected to continue growing in the second quarter.

Despite this, RBC Capital Markets analyst Rishi Lineia stressed that revenue forecasts from AI should still be monitored further, and it is too early to model them before 2025.

Microsoft also reported a significant increase in operating costs in the second quarter, in line with the company's plans to expand its AI infrastructure to meet growing demand.

With recovery in private computer markets expected to help revenue growth in Microsoft's Windows business and enterprise devices, the company remains focused on AI innovation to maintain its position as a leader in the tech industry.

According to Morgan Stanley analyst Keith Weiss, it shows high confidence in Microsoft's potential in artificial intelligence. "Gen AI has emerged as a top priority for chief information officials (CIO) and Microsoft to have a very good position," Weiss said.