Microsoft will continue to spend big on its generative AI projects, and that will benefit Nvidia more than the Windows parent, according to a D.A. Davidson analyst. Microsoft —one of several Magnificent 7 companies that reported earnings last week—posted first-quarter earnings and revenue that beat Wall Street expectations on Wednesday. Gil Luria notes that, if Microsoft continues to invest heavily in hardware from Nvidia for AI without improving its own revenue or margin growth, Nvidia benefits more.
