FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File Photo
Its earnings on Thursday will be an indicator of AI adoption and could influence the movement of technology stocks as a rally in the sector eases this month amid worries that interest rates in the U.S. could stay high for longer. Jaluria added that cloud providers should broadly benefit from signs of stabilization in technology spending, which has been pressured by high-interest rates and economic uncertainty.
That compares with estimated growth of 14.9 per cent for Amazon Web Service and 25 per cent for Google Cloud, the third-largest cloud provider, according to LSEG data. Google-parent Alphabet reports earnings on Thursday and Amazon on April 30. "Broader elements of generative AI story likely need more time to develop and work through enterprise purchasing cycles," Morgan Stanley said earlier this month.While Alphabet shares have gained over 13 per cent so far this year and recently scaled a record high on optimism over its AI efforts including the Gemini models, several analysts said the company was not rushing to monetize the technology and that it may take longer for Google Cloud to benefit from AI integration.