Tech giant Microsoft released its latest earnings report after-hours on Wednesday, revealing strong performance and an optimistic outlook that sent the stock price soaring by over 9% at one point.

According to the report, total revenue reached $70.1 billion, a 13% year-over-year increase, with adjusted earnings per share of $3.46, surpassing market expectations. The growth was fueled by increasing demand for cloud services and AI, with Azure cloud business revenue rising 33%, driven by accelerated adoption of non-AI enterprise services and surplus contributions from early GPU deliveries.

Microsoft highlighted that AI demand significantly exceeded expectations, potentially leading to capacity constraints after June, pushing back the planned equilibrium between supply and demand initially set for Q4. Notably, Microsoft mentioned little about OpenAI and CEO Sam Altman during its earnings call, reflecting a market focus shifting towards investments in AI and cloud infrastructure.

Microsoft plans to invest $80 billion this year in building data centers, with more than half of the funds allocated to domestic projects in the U.S. The company emphasized that the gross margin for AI services has already surpassed that of prior cloud business transformation phases, promising continuous optimization of performance and costs. Historically, economic pressures often lead to accelerated cloud adoption as companies seek to reduce costs and enhance efficiency.