Microsoft stock soars in market value after the tech giant revealed its new AI wave

The company shares rose 7% to exchange at around $295 as markets opened. Microsoft's market capitalization would increase by $140 billion by the end of the day if those gains hold through the closing bell.

After the closing bell on Tuesday, Microsoft's quarterly earnings were made public, which led to an increase in the stock price.

The company beat Wall Street's expectations with revenue of just under $53 billion and earnings per share of $2.45, respectively.

It also said that income from its distributed computing administration Sky Blue developed by 27% year-on-year in the initial three months of 2023.

The most recent Microsoft report covered a quarter in which the company launched a new version of its search engine Bing that was powered by the intelligent language tool ChatGPT and extended its ongoing partnership with OpenAI.

"Investing to lead in the new AI wave" would be one of the tech giant's main business priorities, according to CEO Satya Nadella in a post-earnings conference call, and advancements in this field were already boosting Azure's sales.

He stated to shareholders, "Azure took a share, as customers continue to choose our ubiquitous computing fabric – from cloud to edge, particularly as every application becomes AI-powered."

Nadella added that Bing presently has north of 100 million day-to-day clients, and has seen downloads bounce since Microsoft declared it was coordinating ChatGPT innovation into the web crawler.

After releasing strong results on its own Tuesday, Google parent Alphabet, a large cloud provider, traded flat at the opening bell.

Before publishing its first-quarter earnings on Thursday, Amazon, which also has a significant cloud business, saw a gain of approximately 2%.

Despite the early Wednesday blocking of Microsoft's $75 billion acquisition of Activision Blizzard, the video game developer behind the hit series "Call of Duty," Microsoft made gains.