Nvidia shares sold off sharply this spring, fueled by increased worry that spending on artificial intelligence infrastructure, such as Nvidia’s semiconductor chips, was peaking. The argument was that hyperscalers operating massive cloud data centers were overbuilding capacity and double-ordering chips,

Nvidia welcomed Microsoft to the exclusive $4 trillion club as America's tech giants plow through growing demand for artificial intelligence.

Microsoft forecast on Wednesday a record $30 billion in capital spending for the current fiscal first quarter, after booming sales in its Azure cloud computing business showcased the growing returns on its massive bets on artificial intelligence.

Microsoft plans to invest more than $30 billion in capital spending next quarter —a new high — to meet surging AI and cloud demand.

Microsoft surpassed Wall Street estimates for quarterly revenue on Wednesday as strong demand from businesses for artificial intelligence tools drove steady growth in its Azure cloud-computing unit.

Shares in the tech giant jumped after earnings came in above estimates. CEO Satya Nadella said that cloud and AI continue to drive the company's growth. Microsoft stock surged in after-hours trading on Wednesday after the tech giant beat analysts' expectations for another straight quarter.

Microsoft posted its fiscal fourth-quarter results after Wednesday's closing bell. Investors will be focused on cloud growth, spending plans and monetization of AI tools like Copilot.