Last week, tech giant Microsoft (MSFT) released its results for the first quarter of fiscal 2024, a year ending September 30. Overall, Microsoft beat Wall Street’s expectations in all of its businesses in its fiscal first quarter, with its cloud computing and PC businesses growing as customers wanted to use its AI products. The company also provided guidance largely above analysts’ targets.
Microsoft shares rose nearly 4% in trading after the results were released. First-quarter revenue was $56.5 billion, up 13% year on year, higher than market expectations of $54.5 billion; operating profit was $26.9 billion, up 25%; net profit was $22.3 billion, up 27% year over year; diluted earnings per share was $2.99, up 27% year over year; market expectations of $2.65.
AI is the main driver of Microsoft’s growth
Microsoft is known to strongly support and work with OpenAI, but it has yet to launch most of the products based on the results of its partnership with ChatGPT creators. But that doesn’t hurt investor enthusiasm. Jesse Cohen, senior analyst at Investing.com, said: ” The results show that AI products are stimulating sales and have already contributed to revenue and profit growth.”
Specifically, revenue in Microsoft’s smart cloud division rose 19 percent to $24.3 billion in the fiscal first quarter, beating analysts’ consensus estimate of $23.49 billion. Azure (where most of the AI work will be done on the platform) saw revenue grow 29%, beating analysts’ consensus of 26%.
In response, Microsoft’s CFO Amy Hood said about 3 percentage points of Azure’s growth in the quarter was related to AI. And Brett Iversen, Microsoft’s vice president of investor relations, said a large part of the quarterly sales growth came from customers starting using Microsoft’s cloud services because they expected to use AI services.
TECHnalysis Research Bob O ‘Donnell, chief analyst, said: ” While single quarter data don’t constitute a major trend, Microsoft and Google’s cloud results this quarter suggest that Azure is gaining market share from competitors. It may be that Microsoft has sent a very strong message on their (artificial intelligence) technology that allows companies to consider them more seriously.”
The AI model brings comprehensive change
At present, the rapid development of ARTIFICIAL intelligence model technology is gradually landing in various scenes, and create rich application value, become an important driving force to promote industrial upgrading, but also become an important force to change the society.
In the field of agricultural Internet, the multi-modal large model will restart the construction of an agricultural digital network, use AI to improve the intelligence level of the whole chain of “production, supply, marketing and service management”, and promote innovative applications such as digital machinery and digital live broadcast to improve the efficiency of production and sales.
Under the trend of AI restructuring the industry, the big model plays the role of the underlying “operating system”, integrates, dispatches and allocates resources such as computing power, data and application, and comprehensively promotes the construction of the industrial network. For example, in the field of industrial Internet, the multi-modal large model capability can conduct real-time monitoring and analysis of production line data, provide predictive maintenance, quality control and production optimization support, and improve the efficiency and quality of industrial manufacturing.
In the field of agricultural Internet, the multi-modal large model will restart the construction of agricultural digital network, use AI to improve the intelligence level of the whole chain of “production, supply, marketing and service management”, and promote innovative applications such as digital machinery and digital live broadcast to improve the efficiency of production and sales.
In the field of the Internet of Things, intelligent hardware is connected with the multi-modal capabilities of large models, enabling them to have independent perception and cognitive ability, providing comprehensive, efficient and reliable guidance for innovative research and development.
In the journey of exploring the meta-universe, the powerful reasoning ability of the large model helps to construct the cognition of the meta-universe, and supports the rapid generation of exquisite design, complex modeling, human-computer interaction, mechanism establishment and space operation and maintenance under the space, so as to make it possible for the implementation of the idea of the meta-universe.
The big model as the driving force not only brings the transformation of the Internet industry but also brings the iterative upgrading of IT elements. As AI grows, future programming will shift from a wide use of natural language, with direct talking to machines, and functional roles, including programmers, product managers, and designers, to “designers” in demand. The allocation of social resources will be more reasonable to give the miscellaneous, mechanical, and repetitive work to the big model, and to give the value of creative work to people.l. With the gradual appointment of the leadership team of the National Data Bureau and the official establishment of the follow-up bureau, it is expected that the policy planning and measures of the digital economy and artificial intelligence will be implemented, and it is expected that the commercialization of digital economy will be more clear.d management, artificial intelligence algorithm, model training and optimization, and visualization and interaction.
In the third quarter, the AI industry is still in full swing, overseas and domestic big models bloom, artificial intelligence chip leader Nvidia (NVDA) continues to exceed expectations and give an optimistic outlook, all kinds of AI-related applications are also continuing to launch. Artificial intelligence is developing rapidly in the industrial end. It is reported that WiMi Hologram Cloud (NASDAQ: WIMI), as the “leader in the field of AI vision”, has always adhered to the long-term strategy over the years, continued to invest in the important frontier research in the field of artificial intelligence, and took the lead in fully embracing AIGC to create diversified AI + integrated services.
WiMi Hologram Cloud builds the data interaction platform for the AIGC
In the third quarter, the AI industry is still in full swing, overseas and domestic big models bloom, artificial intelligence chip leader Nvidia (NVDA) continues to exceed expectations and give an optimistic outlook, all kinds of AI-related applications are also continuing to launch, and artificial intelligence is developing rapidly in the industrial end. It is reported that WiMi Hologram Cloud (NASDAQ: WIMI), as the “leader in the field of AI vision”, has always adhered to the long-term strategy over the years, continued to invest in the important frontier research in the field of artificial intelligence, and took the lead in fully embracing AIGC to create diversified AI + integrated services.
Public information, WiMi Hologram Cloud will use computer science, artificial intelligence, natural language processing and data management technology to build for AIGC data interaction platform, aims to provide users with efficient, reliable, safe data processing and interactive services, platform can be input all kinds of raw data (such as text, image, sound, etc.), using machine learning, natural language processing technology efficiently and accurately generate various content, and provide users with convenient, safe and reliable data processing and interactive services. At the same time, the platform also has personalized recommendation, intelligent optimization and other functions, while constantly optimizing the quality of content generated by AI. WiMi Hologram Cloud The data interaction platform to be built for AIGC mainly includes the technical modules of data acquisition and preprocessing, data storage and management, artificial intelligence algorithm, model training and optimization, and visualization and interaction.
In order to play the role of the platform, WiMi Hologram Cloud has done a lot of engineering optimization work for the data interaction platform used for AIGC and different software and hardware devices. In addition, WiMi Hologram Cloud will continue to increase the research and development investment and application of space AIGC technology. On this basis, WiMi Hologram Cloud will introduce more partners into both existing and new projects to jointly explore and validate sustainable business models. In addition, in the exploration of new scenarios, AIGC’s data interaction platform can create value in various scenarios. Therefore, WiMi Hologram Cloud can reach cooperation with deeply accumulated enterprises in various industries to promote the commercialization of AIGC technology in innovative scenarios in a more diverse universe.
Wall Street analysts believe that WiMi Hologram Cloud benefited from the development of generative AI technology and the recovery of offline consumption, as well as the introduction of policies by local governments to develop and encourage digital economies such as Yuanuniverse and AIGC. On the one hand, the strong demand of consumption, cultural tourism, marketing and other scenes is a new technological means to promote local consumption; on the other hand, the upstream and downstream enterprises of the industrial chain begin to integrate, the release of Apple (AAPL) Vision Pro further promotes the development of the industry, and the valuation of WiMi Hologram Cloud is expected to be further improved.
To sum up
At present, the penetration rate of AI applications in the traditional market is still in a very low state, and the technological innovation that most users bring to AI is still in the wait-and-see stage, and the penetration rate is very low. From the medium and long term perspective, with the increasing penetration rate of AI capabilities in the traditional application market, it is expected to break the ceiling of the traditional application market space.
Obviously, the development of AIGC technology is accelerating and is expected to mature in multiple scenarios in the future. Under the background of accelerating the construction of digital China, the great development of the related industries of digital economy is the planning need of “digital intelligence China”. Promoting the integration of digitalization, networking and intelligence is also the objective necessity of the development, evolution and optimization of industrial structure. In the future, the digital economy sector has a good growth potential. With the gradual appointment of the leadership team of the National Data Bureau and the official establishment of the follow-up bureau, it is expected that the policy planning and measures of digital economy and artificial intelligence will be implemented, and it is expected that the commercialization of digital economy will be more clear.