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Yahoo Finance Names Microsoft and Broadcom Top AI Plays After Strong Quarters

The case hinges on strong recent results, rising AI infrastructure needs, plus a projected $10 trillion corporate outlay for artificial intelligence.

Overview

  • Microsoft Cloud revenue grew 26% year over year last quarter, highlighting accelerating demand for AI services.
  • Azure enterprise revenue rose 39% year over year, supported by expanding AI workloads on Microsoft’s platform.
  • Management reported increasing contribution from Copilot as Microsoft integrates the assistant into Microsoft 365 and GitHub, with productivity and business processes revenue up 16%.
  • Microsoft is building data center capacity and developing custom AI chips, including the Maia 200 accelerator that powers models behind Copilot.
  • Broadcom reported $18 billion in quarterly revenue, up 28% year over year, with adjusted net income up 39% to $9.7 billion driven largely by demand for AI accelerators and data‑center networking.