Microsoft and Meta Stocks Soar on Strong AI-Driven Earnings | Tech Shares Lead Market Rally

Tech giants Microsoft and Meta Platforms saw their shares surge in European trading on Thursday following exceptional quarterly earnings released late Wednesday. The companies, both key players in artificial intelligence, posted results that exceeded analyst expectations, reigniting enthusiasm in the tech sector.

Meta shares jumped 12.2% in Frankfurt after the company projected quarterly revenue that significantly outpaced Wall Street forecasts. The upbeat revenue outlook suggests that Meta’s investments in its AI ecosystem and digital ad infrastructure are paying off, boosting investor confidence.

Meanwhile, Microsoft shares climbed 9%, powered by strong growth in its Azure cloud computing division. Revenue from Azure beat analyst projections, highlighting Microsoft’s increasing dominance in cloud infrastructure and the profitable returns from its AI integrations, such as with Copilot and enterprise tools.

The impressive results from these two tech titans had a ripple effect on U.S. markets, with S&P 500 futures rising 1% and Nasdaq futures up 1.3% in early trading. The strong performance suggests broader investor optimism that AI-related revenue streams are becoming more substantial and predictable.

This latest rally underscores the central role of AI in driving tech-sector growth and influencing global markets. As companies like Microsoft and Meta continue to monetize their AI strategies, investor appetite for tech stocks appears to be strengthening, fueling hopes of a sustained market rebound.

Source: Reuters