New York, Jan 27, 2026, 16:05 ET — After-hours
- Microsoft shares rose in Tuesday trading as investors positioned for Big Tech earnings and fresh AI hardware news
- The company’s new Maia 200 in-house AI chip and developer tools put Nvidia’s software advantage back in the frame
- Focus shifts to Microsoft’s results on Wednesday, with Azure growth and AI capacity the key flashpoints
Microsoft (MSFT.O) shares rose 2.3% to $481.30 on Tuesday, after ranging between $472.01 and $482.76.
The move matters because Microsoft is about to report, and the market is jittery about the price tag of artificial intelligence. Investors want to see cloud growth and cash flow keep up with the spending.
Microsoft and Meta report on Wednesday, with Alphabet and Amazon due next week, as Big Tech prepares to lift AI outlays by about 30% to more than $500 billion this year, sharpening scrutiny of returns, Reuters reported. Aptus Capital Advisors’ David Wagner said “the first-mover advantage doesn’t always win the marathon,” as debate has grown over whether Microsoft has kept its edge from the OpenAI tie-up; Nadella has warned that to avoid bubble dynamics, AI’s gains need to be “much more evenly spread.” Morgan Stanley analysts described a “wall of worry” around Microsoft tied to Azure competition and OpenAI, in which Microsoft has a 27% stake; Microsoft has also said AI capacity constraints will last at least until June, while LSEG data show Azure growth is expected to ease to 38.8% in the October-December quarter from 40% in the prior period. (Reuters)
A day earlier, Microsoft unveiled its second-generation Maia 200 AI chip and said it would bring it online this week at a data center in Iowa, with a second location planned in Arizona. It also introduced software tools including Triton, an open-source programming tool meant to take on Nvidia’s CUDA — the software layer developers use to build and run AI workloads — as cloud firms push deeper into custom silicon. (Reuters)
The broader backdrop stayed constructive for big tech. The S&P 500 hit a record high on Tuesday while investors digested earnings and watched the Federal Reserve begin its two-day policy meeting, with rates widely expected to stay unchanged. “The market seems to be hanging in there waiting for a big week of earnings,” said Phil Blancato, chief market strategist at Osaic Wealth. (Reuters)
Microsoft has said it will publish fiscal 2026 second-quarter results after the market close on Wednesday, Jan. 28, and hold its earnings call at 2:30 p.m. Pacific time. (Source)
Traders will be listening for anything that tightens the story around Azure demand, AI-related capacity, and how quickly Microsoft can turn new products into revenue without letting costs run away. The chip push adds another angle: whether Microsoft can bring more of its AI compute bill in-house.
But the set-up cuts both ways. If cloud growth slips more than expected or spending rises faster than revenue, the stock’s recent bid could fade quickly, especially with rivals also building their own chips and the market sensitive to any hint that the AI trade is getting crowded.
Competition will be a constant reference point. Nvidia remains the default supplier for many AI data centers, while Amazon and Alphabet’s Google are also trying to lower AI costs by designing more of the stack themselves.
Next up is Wednesday’s earnings report and outlook from Microsoft, followed hours later by the Fed’s policy statement — two catalysts that could steer MSFT’s next move going into the rest of the megacap reporting week.
