Investors of Microsoft are questioning the profitability of its cloud computing service Azure and the billions invested in AI development. Azure has shown steady growth of 31% quarter-over-quarter, with AI contributing significantly to this growth. Despite a 53% increase in capital spending, Microsoft's global revenue has been on the rise, reaching $236.584 billion in 2024. However, concerns linger about the short-term returns on data center investments, leading to a stock market dip. While Alphabet's profits surged due to AI investments, Microsoft is under pressure to maintain revenue growth. The recent global outage linked to cybersecurity software has also impacted Microsoft. Despite a 13% increase in shares and market value, analysts predict a 14.6% revenue increase for the April-June period, attributed to slower growth in personal computing. Overall, Microsoft faces the challenge of balancing AI investments with revenue growth to satisfy investors. Read more AI-generated news on: https://app.chaingpt.org/news