Comparing AI Growth Between Microsoft and Broadcom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy MSFT?
Source: NASDAQ.COM
- Microsoft Cloud Growth: In fiscal Q2 2026, Microsoft's revenue rose 17% year-over-year to $81.3 billion, primarily driven by its intelligent cloud segment, where Azure cloud services revenue increased by 29%, showcasing the company's sustained competitiveness in cloud computing.
- Surging Capital Expenditures: Despite strong cloud performance, Microsoft's capital expenditures reached an eye-watering $37.5 billion in the same quarter, indicating the company's aggressive investment strategy to meet soaring AI demand, which may impact profit margins in the future.
- Broadcom Semiconductor Surge: Broadcom's revenue hit $19.3 billion in fiscal Q1 2026, a 29% year-over-year increase, with AI semiconductor revenue skyrocketing 106% to $8.4 billion, reflecting its robust growth momentum in the AI sector.
- Optimistic Future Outlook: Broadcom anticipates fiscal Q2 2026 revenue of approximately $22 billion, implying about 47% year-over-year growth, while AI semiconductor revenue is expected to surge 140% to $10.7 billion, further solidifying its market position.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 429.250
Low
500.00
Averages
631.36
High
678.00
Current: 429.250
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Investment Commitment: Amazon's $50 billion investment in OpenAI, along with the provision of 2 gigawatts of Trainium chips for AI model training, not only enhances OpenAI's technological capabilities but also positions Amazon more favorably in the cloud computing market.
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- Intensified Market Competition: As OpenAI deepens its collaboration with Amazon, the potential for further estrangement from Microsoft may increase, with analysts noting that while cooperation is still necessary, market competition is likely to intensify, potentially affecting each company's market share.
See More
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- Market Expectations: With high expectations for Amazon and Microsoft, despite Amazon's stock rising over 24% since the start of the year, the market remains cautious, suggesting that even a beat may not be sufficient for substantial stock price increases.
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