Microsoft shares surged after strong quarterly earnings showed better-than-expected revenue growth and rapid adoption of its AI-powered Copilot tools.

The company’s Azure cloud business grew 43%, boosting investor confidence that its major artificial intelligence investments are beginning to pay off.

Meta, however, saw its stock fall after missing earnings expectations, lowering revenue guidance, and reporting a sharp decline in free cash flow due to heavy AI spending.

CEO Mark Zuckerberg said Meta may explore leasing excess computing power but provided few details, leaving investors uncertain about the strategy, CNBC has reported.

The contrasting results highlighted growing investor confidence in Microsoft’s AI progress while raising concerns about Meta’s costly AI expansion.