Microsoft provides for a strong growth for Azure Cloud Business, the shares increase by 7%

By Deborah Mary Sophia, Stephen Nellis and Aditya Soni

(Reuters) -Dimecres, Microsoft foreseen a stronger quarterly growth than expected quarterly growth of its business in cloud azure after producing a result in the last quarter, soothed investors’ concern in an uncertain economy and increasing their shares by 7% after hours.

Microsoft’s results, which follow the similar results of Google last week, could relieve concern about a potential slowdown in AI demand, after some analysts pointed out the lease contracts at Microsoft data center as a sign of excess capacity.

Investors had also been concerned about abandoning North -Americans who called for companies to be reinstated in spending, but robust advertising sales platforms suggested that it will not happen so far.

Increasing Microsoft shares set it to add more than $ 200 billion to its value.

Microsoft said that the income of their Azure Cloud division increased by 33% in the third quarter ended on March 31, exceeding the estimates of 29.7%, according to Visible Alpha. AI contributed 16 percentage points to growth, up to 13 points in the previous quarter.

The company also provides for a growth in cloud -computing income from 34% to 35% in a constant currency base for the fourth fiscal quarter up to $ 28.75 million and $ 29.05 billion, well above analysts’ estimates, according to Visible Alpha data.

The growth of business reserves, which reflects the new infrastructure and software contracts signed by business clients, increased by 18% in the third fiscal quarter, partly driven by a new Azure contract with the Chatgpt Openai creator. Microsoft refused to comment on the size of the agreement or the role it played in the global growth of azure sales.

However, Amy Hood, the Microsoft CFO, told the investors at a conference that the AI ​​contribution to the cloud computer business was in line with the company’s expectations, while “the actual performance in Azure this quarter was in our business NO II”.

“So the only real reverse we saw next to the AI ​​of the business was that we were able to give supply to several clients,” Hood said.

The company’s azure results took place after several Wall Street analysts had reduced expectations, as research reports said that Microsoft had finished some data center lease obligations.

CEO Satya Nadella told a conference that Microsoft has a long story of constantly adjusting her data center plans, but only in recent quarters had they begun to examine these movements closely.

“The numbers were skeptical, giving them the room to fight heavy.