%lowerThursdayfortheirbiggestdailylosssinceOctober26,2022,%.SharessufferedtheirworstdaymostintwoyearsafterMicrosoftreleasedrecordhighquarterlyearningswhileflaggingslowdowninsalesamidongoingartificialintelligence(AI)spingballoon.

Credit：Microsoft

Microsoftrecordedrevenueof$65.6billionforthefirstfiscalquarteredSeptember30withayear-over-year(YoY)increaseof16%,toppingWallStreetprojectionof$64.51(EPS)alsobeatexpectationwith$3.30,up10%YoY.

MicrosoftClouddeliveredstronger-than-expectedgrowthfortheSeptemberquarter,itingfromgenerativeAIapplicationsastheirinvestmentsindevelopingAIhelpeddrivedemandforcloudservices.

RevenuefromMicrosoftCloudsurged22%YoYto$38.9billion,comparedwithanalysts’forecastof$38.11$24.09billionwitha20%YoYincrease,beatingestimated$26.74,revenuefromthecloudinfrasturebusinessAzureandotherothercloudservicesjumped34%YoYinconstantcurrency%%.

MicrosoftsaidAIcontributed12percentagepointstoAzurerevenuegrowthfortheSeptemberquarter,morethanthecontributionof11percentagepointsthreemonthsago.“StrongexecutionbyoursalesteamsandpartnersdeliveredasolidstarttoourfiscalyearwithMicrosoftCloudrevenueof$38.9billion,up22%year-over-year,”saidAmyHood,executivevicepresidentandChiefFinancialOfficer(CFO)ofMicrosoft.

“WeareexpandingouropportunityandwinningnewcustomersaswehelpthemapplyourAIplatformsandtoolstodrivenewgrowthandoperatingleverage,”CEOSatyaNadellasaidintheearningsrelease.

,orCapex,%to$20billion,%,$14.9%surge,whileanalystsexpectedtobe$14.55billion,up47%YoY.

Incomparisonthebeatbothtopandbottomline,edinDecemberwouldbeintherangeof$68.1billionto$69.1billion,%$69.83,Azurerevenuewillcomeinat31%to32%inthefiscalsecondquarter,slowingdownfrom34%%.IntelligentCloudrevenueisexpectedtobe$25.55billionto$25.85billion,%%.

MicrosoftwillcontinuerampupinvestmentsinAIinfrastructure,centagetobedownfromlastyear,“drivenbytheimpactofscalingourAIinfrastructure.”Sheaddedthatcapitalexpiturestoincrease“onasequentialbasisgivenourcloudandAIdemandsignals.”