Microsoft, Amazon Earnings Lift Investor Confidence Amid AI Infrastructure Concerns

Microsoft and Amazon are among the world's largest companies by market cap, leading the artificial intelligence revolution through massive investments in infrastructure.

After a tough year, both stocks received a boost from strong earnings reports. However, investors remain concerned about the high capital expenditures required for AI development.

Microsoft has been criticized for its Copilot AI assistant's slow adoption, but recent growth suggests it may be gaining traction. The company's Azure cloud division surpassed $100 billion in revenue, up 43% year-over-year.

Average price targets imply nearly 21% upside for Microsoft and around 23% for Amazon. Analysts have largely remained bullish on both stocks, with many citing their significant investment in AI infrastructure as a key driver of long-term growth.