Surprise after the red light? AI strongly supports microsoft Q3 Azure revenue growth of over 30%, but expects Q4 growth to slow down, with increased AI spending.
In the third quarter, Microsoft's total cloud revenue grew by 22% year-on-year, exceeding expectations. AI contributed to a 12 percentage point increase in Azure, higher than the second quarter; Excluding the impact of exchange rates, Azure cloud revenue increased by 34% in the third quarter, slightly slower than the second quarter but still above expectations. However, it is expected that Azure's revenue growth in the fourth quarter will further slow to 31%-32%; Capital expenditures accelerated in the third quarter, with a year-on-year increase of nearly 79%, and is expected to increase quarter-on-quarter in the fourth quarter. The stock price initially rose by over 2% after market trading, but later dropped by over 4%.
Microsoft AI director discusses AI trends: small and large models will advance side by side, the 'scale law' is far from reaching its limit.
At least in the next two to three years, the progress of the 'scale law' in delivering better-than-expected performance will not slow down at all.
Express News | microsoft officially announced: will end support services for Windows 10 system on October 14, 2025
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