Dan Gallagher

to use things like Copilot at work.

Copilot is their AI software that we can use to run spreadsheets, to make PowerPoints, all these sorts of things.

So they have this kind of more complex task.

And one thing the recent report showed is that all these companies don't have as much AI computing capacity as they'd like to have.

They talk about being capacity constrained.

And Microsoft has had to make that different parts of that capacity available for different parts of its business.

And they intentionally decided that

not to put as much capacity towards its cloud business that's the most closely watched by investors.

So the cloud revenue growth wasn't quite what investors wanted to see.

And that's why you're seeing the stock sell down a lot on that report.

Driving AI adoption is just trickier for them because ultimately it's going to depend on how many businesses adopt AI, use it in a way that drives business to Microsoft.

And that's just a longer thing to do.

Google's had a lot of things go its way, especially during 2025.

A big thing that helped the stock was the company essentially beat the government's efforts to break it up.

The stock was really underwater before that.

So once the company kind of won those cases and won some very favorable rulings, the stock really started to take off.

And then their latest Gemini model ended up testing really, really well, scored really high on all these benchmarks, got a lot of strong buzz for like surpassing OpenAI and Chad GPT.

And the fact that they were able to train that model on ships that Google itself designed also was a big help for them because it kind of showed just the technical prowess this company has.

So Google had a lot of things helping its narrative over the last six months that really helped its stock.

AI has created this demand for this very specialized type of memory that works within the AI systems.