Microsoft Corp. The strategy comes as Microsoft ramps up spending on data centers and computing capacity to meet surging AI demand.
“Here, I think there’s tremendous distortion caused by some very big winners, namely NVIDIA Corp. (NASDAQ:NVDA), Microsoft and Meta Platforms Inc.
He pointed to improving sentiment around Copilot as a key catalyst for Microsoft. 8% of the S&P 500 as of Friday’s close.
That gives moves in the software giant an outsized influence on the broader index. Home combines Chat and Cowork.
Code allows users to create apps, dashboards and workflows using natural-language prompts. The shift could also broaden Microsoft’s monetization opportunities.
Schwartz said the shift could boost engagement, retention and monetization across Azure and Microsoft 365. Azure is growing in the low-40% range, while Microsoft has guided for growth to accelerate into the mid-40% range this quarter.
Bloomberg reported that Microsoft aims to increase data center capacity to more than 38 gigawatts by 2032 from about 12 gigawatts currently. That spending reflects a wider industry arms race.
