Microsoft announced first-quarter financial results that surpassed Wall Street expectations, with revenue rising 18% to $77.7 billion and net income climbing to $27.7 billion. [1, 2, 7] The strong performance was largely driven by continued high demand for its cloud computing and artificial intelligence services, with the Azure and other cloud services revenue growing 40%. [2, 3, 4] Alongside the strong earnings, the company revealed plans for a massive increase in capital expenditures to expand its AI infrastructure. [3, 4] CEO Satya Nadella announced intentions to boost total AI capacity by 80% in 2025 and to nearly double Microsoft's data center footprint within the next two years, signaling an aggressive push to dominate the AI sector. [1, 5] Despite the positive earnings report, Microsoft's shares fell by approximately 4% in after-hours trading. [1, 3, 4] The negative market reaction was attributed to investor concerns over the scale of the increased spending on AI and data centers, which was significantly higher than analysts had anticipated and weighed on near-term profit outlooks. [3, 4, 6]