"Microsoft and Alphabet's Earnings Highlight AI's Impact on Wall Street"

Microsoft's strong results, driven by 28% growth in its Azure cloud-computing business and the increasing demand for AI services, led to a 4% rise in its shares. In contrast, Alphabet's shares dropped 6% as investors expressed concerns about the slower growth of its Google Cloud business and its ability to capitalize on AI. While Microsoft benefits from AI tailwinds in the cloud and sees new project starts in AI, Alphabet's cloud business is facing challenges and customers are being selective with their IT budgets. Wall Street's focus on AI as a driver of growth is evident, with companies without a strong AI story falling out of favor with investors.