Microsoft and Alphabet Defy Rate Hike Fears with Staggering AI-Fueled Growth

Mega-cap tech giants Microsoft and Alphabet have posted impressive AI-fueled quarterly results despite rising rate hike fears. The 10-year Treasury yield reached its 98.8th percentile reading over the past year, but these two companies' balance sheets are well-equipped to absorb the shock.

Microsoft's fiscal Q4 saw revenue jump 17.8% to $90.01 billion, with Intelligent Cloud growing 32% and Azure reaching a staggering 43%. The company's commercial RPO ballooned to $678 billion, up 84%, dwarfing its peers. Satya Nadella highlighted that 'Azure revenue surpassed $100 billion for the first time.'

Alphabet's Q2 was equally impressive, with revenue hitting $119.80 billion, up 24.2% and marking its 12th straight quarter of double-digit growth. Google Cloud accelerated to an astonishing 82% growth rate at $24.77 billion.