OUR Microsoft as well as its parent company Googlefamous Alphabetshow them with some of her magic artificial intelligence take care of Wall Street. Latest quarterly results technological giants, published on Tuesday, surpassed all fears of investors. But none had the dizzying growth that made them cyber titans. Predicting uncertain future earnings from AI operations is their management’s way of rekindling public enthusiasm and justifying their stock valuation. Microsoft’s revenue was $52.9 billion, about 7% higher than a year ago and almost unchanged from the previous quarter, the last in 2022.

Plummeting PC sales hurt operating system revenue Window companies. Even former high-growth stars like professional social network LinkedIn and cloud software platform Azure have also slowed down. The latter’s annual growth rate is now 27% compared to 46% a year ago. However, the company earned $18.3 billion, up 9% from last year.

The Alphabet has a similar picture, although more confusing. Its revenue grew 3% year-over-year to $69.8 billion. The online search giant made $15.1 billion, up from $16.4 billion last year. However, they also include $2.6 billion in staff and job cuts as the group focuses on cost savings to boost profits along the way. It also added $70 billion to its share buyback program, an easy way to attract investors and Wall Street analysts.

The figures beat analysts’ low expectations amid a difficult economic start, Reuters reported. This was enough to raise the share price of the two groups after hours. But consider that Microsoft is trading at 27 times its estimated earnings next year, which is roughly double earnings multiples of 2014, when Satya Nadella took over as boss. Alphabet is trading at 20x, which is still important for what is essentially a dead end company. Maintaining these high ratings seems difficult without a rapid increase in sales.

This probably explains why both companies are having a hard time waiting for the promises of artificial intelligence. The rapid development of chatbot technologies such as ChatGPT, developed by OpenAI, a Microsoft partner, captured the public’s attention by sparking their imagination. Proponents of the technology say it promises to radically improve existing markets such as the Internet search market, as well as create gigantic new markets. How quickly this will appear in the financial statements of each of the aforementioned companies is not yet clear. However, in light of the latest first quarter results, it seems that both relevant executives and investors can easily imagine that profits from AI activities are not far off.