There's "a wall of worry" around Microsoft's earnings, Morgan Stanley analysts said, pointing to "ramping capital expenditures, margin compression, lack of evidence on AI returns, and messiness post a financial resegmentation."
"Demand from data center customers continues to be strong and customer inventory levels are healthy," Micron CEO Sanjay Mehrotra said on a conference call with analysts.
Businesses are heavily reliant on cloud services provided by companies such as Oracle, Microsoft and Amazon to harness AI capabilities and run day-to-day operations.
It was Samsung's highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant's cash cow after a slump caused by weak post-pandemic demand for gadgets that use the chips.
The AI frenzy has sparked a rally in chipmaker stocks across the globe. Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker, whose customers include AI poster child Nvidia, has especially benefited from the soaring demand for AI-capable chips.
Accenture's generative AI business, which helps companies automate operations to save on costs and boost productivity, recorded an about 50% jump in new bookings quarter-over-quarter.
"I expect that each successive quarter should grow faster than the previous quarter - as OCI (Oracle Cloud Infrastructure) capacity begins to catch up with demand," CEO Safra Catz said.
Gross domestic product grew by a preliminary 6.51% in the January-March period from a year earlier, the statistics agency said on Tuesday, beating the 5.65% growth forecast by analysts in a Reuters poll.
It beat expectations for a 1.88 trillion won operating profit by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate.
TSMC, which produces some of the most advanced microchips in the world, dominates the chip-making industry, as well as its customer US-based Nvidia.
While IT spending has dwindled over the past year, cybersecurity-related expenditure has remained stable as businesses and governments scramble to secure their systems against hackers.
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