koolgal
10-14
🌟Will $Microsoft(MSFT)$ latest move to cut Azure costs by 20% unleash profits or confirm AI bubble?  There are 2 sides of the coin:

The Bull Case: The Efficiency Unleased Play
Azure is shifting focus toward infrastructure economics.  By deploying internal custom chips like the new Maia 300 next year, Microsoft is trying to break free from NVIDIA's margin crushing monopoly. 

By cutting back 20% of its costs, it allows Microsoft to use the money saved on this new transition.  When these huge hardware investments finally begin to scale & monetise through enterprise Copilot, it will unleash a tidal wave of pure operating profit.

The Bear Case: The ROI Nightmare

The truth could be that the return on AI investment fail to match the cost of building it.  The cost cutting is a defensive shield because the revenue runway cannot sustain a USD115 billion annual Capex indefinitely.

My Take : Microsoft is doing the right thing to cut cost, making it stronger ultimately.

@TigerStars

The boss asked me to issue coins
Hello everyone! Today is the eve of the "US Stock Earnings Week War", and it is also the first day of this tiger! To be honest, the boss stuffed a pocket of tiger coins as soon as he entered the office, and gave a death order: "If you can't finish it in a month, don't think about getting off work!" In order to get off work early and eat hot pot, I will hold fresh topics here every day and wait for everyone. As long as you dare to talk, I dare to send it! Look directly at today's hot discussion 👇 🔥 The Nasdaq 100 fell 1.1%. Should the Fed FOMC + Big Four be safe from earnings week?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • AmyMacaulay
    10-14
    AmyMacaulay
    That 20% cut barely dents a USD115B capex bill. I care more about when AI ROI actually turns positive
    • koolgal: 
      Happy weekend ahead 🏖️🏖️🏖️
    • koolgal: 
      Best of luck 🍀🍀🍀
    • koolgal: 
      Thanks for sharing your valuable insights 🥰🥰🥰
    • koolgal: 
      May you have a winning week 🌈🌈🌈💰💰💰
  • icycrystal
    10-14
    icycrystal
    thanks for sharing
    • koolgal: 
      May you have a winning week 🌈🌈🌈💰💰💰
    • koolgal: 
      Best of luck 🍀🍀🍀
    • koolgal: 
      Appreciate your support 🥰🥰🥰
    • koolgal: 
      Happy Friday 🏖️🏖️🏖️
    • koolgal: 
      My pleasure 😍😍😍
  • LEESIMON
    10-15
    LEESIMON
    🩷Good
    • koolgal: 
      Best of luck 🍀🍀🍀
    • koolgal: 
      Happy Friday 🏖️🏖️🏖️
    • koolgal: 
      Thanks 😊😊😊
    • koolgal: 
      May you have a winning week 🌈🌈🌈💰💰💰
    • koolgal: 
      Appreciate your support 🥰🥰🥰
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