Microsoft earnings will show what 'inning' AI is in: Analyst

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Ali Mogharabi,Sundar Pichai,Alphabet

Microsoft (MSFT) is set to report its fourth quarter earnings after the market close on Tuesday. Ali Mogharabi, WestEnd Capital Management's senior equity...

) is set to report its fourth quarter earnings after the market close on Tuesday. Ali Mogharabi, WestEnd Capital Management's senior equity analyst, joins Morning Brief to discuss his expectations for the results and how he anticipates AI will impact them.

What are you anticipating as the company is gonna have to answer questions about the level of those investments and whether or not they're at the peak of those or if the peak of those investments in that cap X is behind it.Um You know, we, we still think that overall within the A I cycle, we're in probably still the early stages.

So, you know, if you're talking about A I on the cloud side, uh you know, Google reported as, you know, 29% year your growth.And remember for that was driven by A I uh for reach the training and inference requires a, you know, very high computational capability. Um And just to give you an example, I'm sure you remember last week, you know, uh Sinar Paka, uh CEO of alphabet, he actually said there may be over investments on that front, but that's actually much better than under investing and, and falling behind.

And the next phase is going to be in the inference side, which is actually developing those really, those great tools to either help various firms monetize their products more effectively and or of course, become operate more efficiently, become more productive and so forth.So again, I I think we're still probably in the 4th 5th inning.

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