Tech Stocks Surge: Microsoft, Meta Rise Amid AI-Driven Earnings

Microsoft and Meta reported strong quarterly earnings driven by AI, with Microsoft ending up 4% and Meta's shares increasing 11%. Microsoft's market capitalization reached near $4 trillion. The tech giants' solid results and positive outlook boosted their stock prices.

Microsoft and Meta reported robust quarterly earnings, driven primarily by advancements in artificial intelligence (AI), which significantly boosted their stock prices. Microsoft's market capitalization reached approximately $4 trillion, joining Nvidia as the only two publicly traded companies to hit this milestone. Meanwhile, Meta's shares increased by 11%, following its earnings report.

Microsoft's earnings were particularly impressive, with the company's adjusted earnings per share (EPS) of $3.65 on revenue of $76.4 billion, exceeding analysts' expectations. The company's Intelligent Cloud segment, which includes its Azure business, saw revenue of $29.8 billion, up 34% year-over-year. CEO Satya Nadella attributed this growth to the driving force of cloud and AI in business transformation. The company also announced plans to invest an additional $10 billion in its AI build-out, bringing the year's total to $85 billion [1].

Meta's earnings report also highlighted strong performance, with shares increasing by 11% after the announcement. The company reported better-than-expected ad sales, boosted by AI-driven improvements in targeting and content delivery. Meta's capital expenditures for the year were forecast to range from $66 billion to $72 billion, reflecting the significant costs associated with building and powering AI infrastructure. The company plans to offload $2 billion in data centre assets to attract external financing for these projects [3].

Both companies' investments in AI infrastructure are expected to benefit chipmakers, as they continue to shell out billions in capital expenditures. Analysts at Citi noted that these increased expenditures will likely be a boon for the semiconductor industry [4].

The positive outlook and strong earnings reports from both companies have bolstered investor confidence, leading to significant gains in their stock prices. Microsoft and Meta's continued focus on AI and cloud technologies positions them well for future growth and innovation.

References:
[1] https://finance.yahoo.com/news/microsoft-market-cap-tops-4-trillion-joining-nvidia-above-milestone-after-latest-earnings-beat-200637180.html
[2] https://theoutpost.ai/news-story/enovix-reports-strong-q2-2025-results-launches-ai-1-battery-platform-18554/
[3] https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/meta-share-ai-infrastructure-costs-us2-billion-asset-sale
[4] https://www.cnbc.com/2025/07/31/meta-microsoft-stock-earnings-ai.html