Microsoft increases dividend as AI spending rises
AI Investments drive Microsoft’s capital spending surge
The company has announced a new $60 billion share buyback program, approved by its board, alongside a quarterly dividend increase to $0.83 per share, reflecting a 10% rise. The Tech Giant will host its yearly shareholders’ meeting on December 10th.
Amid growing AI investments, Microsoft revealed a significant 77.6% increase in capital spending in the quarter ending 30 June, largely attributed to AI infrastructure. Although its Azure cloud business has exhibited slower growth recently, the company anticipates an acceleration in the second half of fiscal 2025.
Big tech firms like Microsoft and Google are under pressure to justify their AI investments. Microsoft is one of the few companies that has reported AI’s contributions in its earnings. Its stock has risen about 15% this year and saw a slight increase in aftermarket trading following the news.
