Alphabet, Microsoft earnings show hefty AI bets are driving growth


Google, Microsoft and Alphabet logos and AI Artificial Intelligence words are seen in this illustration taken, May 4, 2023. REUTERS/Dado Ruvic/Illustration

LONDON: Alphabet and Microsoft ignited a rally in technology stocks with earnings that showed big artificial intelligence (AI) investments were driving growth, allaying doubts that their costly bets would take time to pay off after a soft forecast from Meta Platforms.

Alphabet rose 10%, crossing US$2 trillion in market value with a gain of about US$180bil as it sweetened the pot for investors with its maiden dividend and a US$70bil stock buyback.

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