Microsoft is the only cloud company expected to keep positive free cash flow, though no exact figure was given and it isn't guaranteed; Azure growth may make Q1 results better than usual and Copilot could surprise positively; at a record high, dips are buyable.

What does this mean for leading AI companies? Such as Nvidia, Microsoft, and Amazon. All of these companies will announce their earnings in the next few weeks.

We saw this at Microsoft last week.

Turning to Microsoft, the stock started the week at $541 and has fallen by about 5.2% this week to $529. Microsoft will be the only cloud computing company that does not expect negative free cash flow.

Negative free cash flow is your operating cash flow less the capital expenditures you spend on data centers.

Microsoft stated during its latest conference call that it will maintain a positive cash flow as we enter next year. But they did not provide an exact figure, only saying that it would be positive.

It could be positive at $18 or more, you really can't guarantee it with Microsoft, although they will announce their earnings in two weeks. I'm sure they'll face a lot of questions there.

Now, the company’s first-quarter results may be even better than usual due to the growth of Azure, their cloud computing division . This is according to some analysts. We also saw, about a week ago, analysts saying that Copilot subscriptions might bring positive surprises as well.

The head of Azure is seeking to reduce costs by at least 20% over the next year. Now, the company has also entered the field of custom chips with the launch of the artificial intelligence chip "Maya 300" .

This is not necessarily in relatively large sizes.

My guess is that Microsoft will most likely use these chips internally , rather than making much of a business of selling them on the Azure platform . However, if this turns out to be something similar to Google's "TPUs" (Processing Units), where they can rent them out on the "Azure" platform, and perhaps eventually sell them to external groups such as " OpenAI", then that could be a good business.

"Microsoft," wow, wow, wow, wow. It has just been confirmed, yes, it is a new record high. Oh my God, look at that graph. The company will announce its profits within 12 days. Even if you sell here, you will find support at approximately the breakout point.

You have support along the path here at the moving averages. Yes, you can definitely buy when Microsoft's price drops.