Microsoft's AI segment has quietly become a major growth engine for the company, with an annual run rate of $37 billion and 123% expansion. This robust performance is expected to continue influencing Microsoft's Intelligent Cloud revenue [1]. However, financial analyst Jim Cramer advises against buying surging AI stocks, citing that rewards are often given to those who wait rather than act quickly on conviction [3].
In contrast, Meta reported a 28% increase in Q2 2026 revenue driven by AI-enhanced advertising, despite a net income decline due to increased investment costs [2]. Alphabet's Q2 revenue also saw a rise of 24%, primarily attributed to Google Cloud and AI investments [4].