Microsoft, Alphabet (MSFT, GOOG) Gain After AI Fuels Cloud Computing Demand

Microsoft Corp. and Google owner Alphabet Inc. sent a clear message to investors on Thursday: Our spending on artificial intelligence and cloud computing is paying off.

The companies trounced Wall Street estimates with their latest quarterly results, lifted by a surge in cloud revenue — fueled in part by booming use of AI services. That sent shares of the companies up in late trading, with Alphabet soaring as much as 17% and Microsoft gaining 6.3%.