Amazon, Microsoft Aim for All-Time Highs Going All-In on AI: Hype or Opportunity?

investing.com:

The artificial intelligence (AI) sector continues to be one of the most promising areas for future growth. Unsurprisingly, technology giants like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Apple (NASDAQ:AAPL) are investing heavily in developing high-quality AI products and solutions.

However, Apple has fallen slightly behind its competitors due to delays in its own computing platform development using large language models available in the cloud. Catching up may be challenging due to customer reluctance to switch providers, as it requires reprogramming existing models. Meanwhile, competitors like Amazon and Microsoft show no signs of slowing down, unveiling more AI solutions that are expected to boost their AI segment revenue.

The stock prices of both Amazon and Microsoft are on an upward trend, which is expected to continue unless the Federal Reserve surprises by raising interest rates at its upcoming meeting.

Microsoft recently announced a major collaboration with SAS to expand its artificial intelligence solutions. The collaboration will focus on two key areas: data management and transformation and generative AI-based tools. The partnership aims to leverage SAS's industry knowledge and AI capabilities to create comprehensive management solutions. The first results of this collaboration are expected in the fourth quarter of this year.

Microsoft is also working on more AI-powered Office-related tools, including a virtual assistant called Copilot. Copilot will allow users to generate specific content, such as reports or emails, by simply requesting it. Additionally, Microsoft is developing a PDF analysis function to streamline office work processes.

Although Microsoft's stock experienced