Google and Microsoft shares climb amid relief over AI revenues

Shares in Alphabet surged as much as 12% in after-hours trade. Revenue was $80.5bn for the three months to the end of March, compared with analysts’ estimates of $78.6bn (€73.25bn)
Google and Microsoft shares climb amid relief over AI revenues

Google Cloud revenue grew 28% in the first quarter, boosted by a boom in generative AI tools that rely on cloud services to deliver the technology to customers.

Google-owner Alphabet and Microsoft delivered better-than-expected earnings last night, sending their shares higher in after-hours trade, revealing investor relief that the hype surrounding AI hasn’t yet pushed the valuations of the tech giants to unsustainable levels.

Alphabet also announced its first ever dividend of 20 cents per shares, returning capital at a time when the tech giant is spending billions on data centres to catch-up with rivals on generative AI.

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