Stock Movers Deep Dive: Big Tech Cloud & AI Bets
Jul 27, 2025
Bloomberg Intelligence's Anurag Rana discusses how Microsoft’s software and AI sales might counterbalance economic uncertainties affecting other sectors. He highlights potential challenges in attracting new users through 2025 and anticipates a dip in non-AI Azure expansion as companies aim to cut costs. The strategic partnership with OpenAI is expected to enhance Microsoft's AI revenue, projecting over $20 billion in sales this year. The conversation also delves into how cybersecurity breaches impact major tech companies like Microsoft, Amazon, and Google.
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Minimal Stock Impact from Breaches
- Microsoft security breaches have minimal impact on the stock price because they are usually limited to specific applications.
- These incidents often boost sales of Microsoft security products and cloud workload migrations for better protection.
Microsoft Gains from OpenAI Cloud Edge
- Microsoft has narrowed the cloud gap with AWS due to its OpenAI partnership, benefitting greatly from ChatGPT's popularity.
- Oracle supports OpenAI's infrastructure needs, showing different but significant roles among top cloud vendors.
Tech Spending Split: AI vs Non-AI
- Non-AI tech spending is delayed due to economic uncertainties affecting deal closures.
- AI spending grows robustly, but heavy AI investments may squeeze margins, prompting potential workforce reductions or hiring slowdowns.