Yahoo Finance·2025-11-04 11:14Core Insights - Microsoft is transitioning from a software company to a cloud services provider, with significant investments in Azure and AI capabilities [1][3] - The partnership with OpenAI has strengthened, with Microsoft holding a 27% equity stake valued at approximately $135 billion and a long-term commitment from OpenAI to purchase $250 billion in Azure services [2] - Microsoft's recent fiscal Q1 results showed a 26% year-over-year increase in cloud revenue, totaling $49.1 billion, and an overall revenue of $77.7 billion, up 18% from the previous year [7][9] Microsoft - Microsoft plans to increase its AI capacity by 80% by the end of fiscal year 2026 and aims to double its data center footprint in the next two years [1] - The company's Intelligent Cloud segment, which includes Azure and AI, reported a 28% year-over-year growth, reaching $30.9 billion [7] - Analyst Dan Ives from Wedbush has a bullish outlook on Microsoft, projecting a price target of $625, indicating a potential gain of approximately 21% over the next 12 months [11] Alphabet - Alphabet's revenue for Q3 2025 was $102.35 billion, with Google Services generating $87.1 billion, including $74.18 billion from advertising [12] - Google Cloud revenue increased by 34% year-over-year, driven by core products and AI solutions [13] - Analyst Scott Devitt from Wedbush has a positive view on Alphabet, with a price target of $320, suggesting a potential gain of around 14% [16]