Professor Erik Gordon said the "AI bubble is almost as big as the planet Jupiter," and Microsoft's stock drop is a "warning of the burst to come."

Microsoft (NASDAQ: MSFT) continues to provide investors with earnings beats and strong growth in its cloud, AI and gaming segments.

With Microsoft spending many billions on data centers, and rumors that no one is using its AI, CEO Satya Nadella shared some usage numbers.

Microsoft falls 6.8% after hours despite beating Q2 earnings as Azure growth slows to 39% and AI spending hits $37.5B record.

Nvidia stock was reacting after Microsoft unveiled its new in-house artificial-intelligence chip.

While Microsoft's quarterly revenue and earnings topped analysts' estimates, worries about the tech giant's cloud growth, coupled with its rising spending on AI and reliance on a few large customers,

Microsoft stock slid over 11% after Q2 earnings as investors fretted over surging AI capex and slowing Azure growth.

While Microsoft's stock reaction would suggest otherwise, Emarketer analyst Jeremy Goldman thought the latest quarter "did what Microsoft needed it to." He said in emailed comments that Microsoft "framed AI less as a cost center and more as an extension of cloud demand,

Microsoft is set to report its latest quarterly results after the market closes Wednesday, with traders anticipating a big move in the tech giant's stock following the results.