Microsoft and Alphabet both posted strong revenue growth in recent quarters, with Microsoft reaching $82.9 billion and Alphabet $109.9 billion in the quarter ended March 31, 2026. Microsoft's revenue rose 18% year-over-year in its fiscal third quarter, while Alphabet generated a 57% net income margin compared to Microsoft's 38%. Despite the revenue gains, both stocks have declined recently due to heavy spending on AI infrastructure, which some investors view as a buying opportunity. Microsoft's forward price-to-earnings ratio of 18 is below Alphabet's 24, and its dividend yield of 1% exceeds Alphabet's 0.26%.
Alphabet Inc Class CHeavy AI infrastructure spending is pressuring margins and stock price despite strong revenue growth
Microsoft CorporationHeavy AI infrastructure spending is pressuring margins and stock price despite strong revenue growth
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