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Microsoft did better than expected: artificial intelligence pushed its first quarter

Microsoft posted slightly better-than-expected results for the first quarter of the year on Tuesday, boosted by its cloud activity that relies on artificial intelligence.

Between January and March, the firm’s third accounting quarter and the first of the year, Microsoft registered a 7% increase in its turnover compared to the same quarter last year, to 52.8 billion dollars.

Microsoft has taken a clear lead among the tech giants since the November launch of ChatGPT, the generative artificial intelligence interface (capable of creating on-demand content in a common language), devised by Californian start-up OpenAI, in which it invested massively.

The Redmond (Washington State) firm already integrated ChatGPT to its Bing search enginewhich relaunched this portal so far unable to compete with Google.

Microsoft intends to use ChatGPT technology in all of its products. “The world’s most advanced artificial intelligence models are usable with the most universal interface, the common language, and will usher in a new era for computing,” said Microsoft Chairman, Satya Nadella, quoted in a statement published on Tuesday.

A sign of the boost that ChatGPT gave the group, its revenue from the cloud or remote computing, which uses artificial intelligence, rose 22% in one year to $28.5 billion and represents more than half of the company’s turnover (54 %).

In the first quarter, Microsoft’s earnings reached 18.3 billion dollars, 9.4% more than in the same quarter last year. Per share, it was $2.45, well above the $2.24 expected by analysts. In post-close electronic mail on Wall Street, the firm’s shares were up 4.79%.

Wall Street on the rise




First Republic Bank in New York. Photo Reuters

Wall Street closed this Wednesday in red, and the Dow Jones Industrials, its main indicator, fell 0.68%, as investors analyze the latest business results.

At the close of trading, the Dow Jones was down as 33,301 units and the selective S&P 500 subtracted 0.38% to 4,055 points.

For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, rose 0.47% to 11,854 integers.

During the day, the concerns of investors regarding the First Republic bank have been stronger than the enthusiasm that the good results of the technology companies have been able to arouse.

And it is that First Republic fell 29.45% this Wednesday, after falling almost 50% on Tuesday. The bank announced Monday that its deposits fell 40%, to $104.5 billion, in the first quarter of the year. For its part, Microsoft rose more than 7% to trade at its highest point in more than a year later. to exceed Wall Street expectations in the results of its last quarter.

Amazon, due to report results on Thursday, was up 2.35%. Alphabet was down 0.13%, however, as the Google parent posted better-than-anticipated earnings but said revenue grew just 3%. compared to the same period a year ago.

After the stock market closes, it will be Meta (which rose 0.89%) to announce its last quarter.

The only sector that closed in green was technology, with a rise of 1.73%, while the biggest losses were for public services and industry, which fell by 2.37% and 1.87.

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