"Analyzing Microsoft's Q1 Earnings: Beyond AI Hype"

Microsoft's upcoming earnings report may face a more skeptical investor audience as the hype around artificial intelligence (AI) has diminished. While AI was previously seen as a potential driver for the company's stock, investors are now questioning its functionality, profitability, and competitive advantage. Instead, investors are expected to focus on Microsoft's current Azure cloud-computing narrative, particularly its growth in AI services. The company's forward-looking commentary on Azure's performance is likely to determine the stock's reaction, with expectations of 25-26% growth for Azure in the December quarter, including a contribution from AI. Microsoft's Copilot technology, although in beta mode with several large customers, is not expected to significantly impact the December-quarter outlook.