Q3 earnings continued to highlight big tech’s 2023 comeback with Microsoft edging out its competitors when it comes to cloud computing.
“On the cloud side, Microsoft reported growth of 29% at Azure,” CNBC reported. “That’s faster than Google Cloud’s 22% growth and more than double the pace of expansion at Amazon Web Services, which reported 12% growth.”
The software giant faces stiff competition from its other big tech peers like Amazon’s AWS. Nonetheless, Microsoft is seeing demand from companies that want to run their artificial intelligence (AI) models on Azure, its cloud computing service.
“Given our leadership position, we are seeing complete new project starts, which are AI projects,” said Microsoft CEO Satya Nadella. “As you know, AI projects are not just about AI meters. They have lots of other cloud meters as well.”
If Microsoft can continue to be competitive in the cloud computing space, consider the Direxion Daily MSFT Bull 1.5X Shares (MSFU). The fund allows for an extra 50% exposure to Microsoft stock to maximize profit potential.
2 More Trades to Consider
Cloud computing should continue to be a story in big tech, so traders can consider the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL), which seeks 200% of the daily performance of the Indxx USA Cloud Computing Index. The companies included in the index are involved in the delivery of computing services — servers, storage, databases, networking, software, analytics, and more, over the internet — more broadly referred to as “the cloud.”
The importance of AI has certainly come to the forefront this year in big tech’s comeback. Microsoft is no stranger to AI, with its $10 billion investment in OpenAI, which helped contribute to its recent 13% revenue jump.
“We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers,” said Nadella in a statement.
Given the ongoing growth potential of AI, traders should also consider the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT) as an additional play. The fund seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index, which aims to provide exposure to companies in developed markets expected to benefit from the adoption and use of robotics and/or AI.
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