“Oracle Just Sent a WARNING to Nvidia and AI Stock Investors!!”
AI summary · MSFT's Azure growth reaccelerated to 48% from 39%, 38%, 39% and 42% in the prior four quarters, and it beat expectations despite third-party GPU delays, helped by GPU-cluster efficiency and favorable token prices. It stands out as the only giant cloud company with positive free cash flow, but capex is expected at $225 billion-$250 billion in calendar 2027, so the speaker questions whether free cash flow remains positive.
Now, I want to move on to talking about Microsoft because its shares have already risen after trading hours. One of the main things is that they are finally seeing an acceleration in Azure's growth, aren't they?
During the four quarters prior to this, Azure's growth was 39%, 38%, 39%, and 42%. In this quarter, it grew by 48% year-on-year. They predicted that growth for the next quarter would range between 49% and 50% at constant exchange rates.