Microsoft and NVIDIA drive AI rally amid sector volatility
Business
Big day for AI stocks! Microsoft's Azure cloud just posted a 43% jump last quarter, sending Microsoft shares up 15%.
That momentum pushed the Nasdaq up by 2%, and NVIDIA's data center revenue shot up an impressive 92%.
Still, not everything is rosy: 13 AI companies are down over 50% from their peak, so the sector has some bumps.
Nebius $1B deal, Amazon AWS gains
Nebius saw its shares pop nearly 12.4% after landing a more than $1 billion deal with Reflection AI through 2029, but a proposed moratorium in New York could slow its plans.
Amazon's stock got a boost thanks to AWS growing by 28% and hitting its best profit margins in years.
With strong demand for Amazon's Trainium AI chips, analysts are predicting more revenue growth (and maybe a nice upside) through 2027.