Microsoft has solidified its position as a leading beneficiary of the artificial intelligence (AI) boom, with its recent earnings underscoring strong growth in both its AI and core business segments. The broader technology sector is experiencing a surge in AI-related capital expenditures, with major companies including Microsoft, Amazon, Alphabet (Google), and Meta collectively expected to spend approximately $400 billion on AI initiatives in 2025. This level of investment is comparable to the entire European Union's defense budget of $410 billion. Despite Amazon's share price experiencing a decline post-earnings, Microsoft and Meta saw their shares rise. Morgan Stanley projects that global spending on AI and related technologies could reach $2.9 trillion by 2028. The increased capital expenditure is closely correlated with growth among hyperscale cloud providers, highlighting the strategic importance of AI investments for these companies.