Microsoft and Amazon Shares Surge on AI Cloud Growth

Shares of Microsoft Corp. and Amazon.com Inc. surged following earnings reports that demonstrated accelerating AI-related revenue growth within their cloud-computing divisions. Microsoft reported that Azure cloud sales rose 43% in its fiscal fourth quarter, while Amazon Web Services saw a 37% jump in second-quarter revenue.

In the six trading sessions since July 29, the two companies added a combined $1.3 trillion in market value. Microsoft shares increased by 28% and Amazon shares rose 20%. This rally follows a period of investor skepticism regarding the high capital expenditures required for artificial intelligence development.

The rebound was supported by lower valuations and a clearing event involving forced selling at the Situational Awareness fund. While the strength of these two companies pushed the S&P 500 to a new all-time high, some analysts warn that the rapid gains may be a bear market rally driven by options speculation and retail buyers rather than institutional investment.