Big investments should pay of

Article Excerpt

These two technology legends are spending big sums on new plants. These investment will help them tap into the fast-growing demand for artificial intelligence-related products as well as spur their long-term earnings. MICROSOFT CORP. $423 is a buy for aggressive investors. The world’s largest computer software maker (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.4 billion; Market cap: $3.1 trillion; Price-to-sales ratio: 12.6; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.microsoft.com) continues to benefit from strong demand for its Azure cloud computing service and its artificial intelligence software tools. In its fiscal 2025 first quarter, ended September 30, 2024, the company’s revenue rose 16.0%, to $65.59 billion from $56.52 billion a year earlier. Overall earnings also rose 10.4%, to $3.30 a share (or a total of $24.67 billion) from $2.99 a share (or $22.29 billion). To meet the growing demand for AI services, Microsoft continues to invest heavily in specialized chips and datacentres. As a result, capital spending in fiscal…