Big Tech Companies Under Pressure to Show Results in AI

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Artificial Intelligence,Big Tech Companies,Technological Shift

Microsoft proves its strength; Qualcomm may have turned a corner

The hype around artificial intelligence was taken down a notch in the third quarter, as Big Tech companies came under pressure to show results in what has become the largest technological shift since the creation of the internet.

Microsoft: Microsoft is the clear frontrunner in AI-focused Big Tech, driven by its strong monetization and adoption narrative. In the third quarter, it showcased robust results across many metrics, and strong performance was fueled by AI and cloud services. Microsoft is the biggest company investor in OpenAI, the creator of ChatGPT.

In a recent conversation with CEO Cristiano Amon, he expressed confidence in Qualcomm’s strength, highlighting positive revenue growth from Chinese manufacturers and significant growth in the automotive business. He said smartphone makers have worked through most of their inventory and are starting to place orders again. Boosting investor confidence, Qualcomm signed a new supply agreement with Apple in September.

ServiceNow: ServiceNow showcased consistent growth in simplifying complex software environments with its AI-powered Now platform. The company is operating at a $10 billion annual rate, a milestone, having posted accelerating revenue growth for the third straight quarter. On the bright side, the number of daily and monthly active users in various categories all rose during the quarter, by up to 7%. Advertising revenue jumped 24% to $33.6 billion, more than twice the pace of rival Alphabet GOOG, +1.80%. Amazon’s ad revenue increased slightly faster, by 26%, though the total amount in dollar terms is almost one-third that of Meta.

Jassy cited AWS’s innovation in generative AI, emphasizing momentum with notable clients including Adidas, Booking.com and Merck.

 

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