Microsoft, Alphabet stocks under pressure to show AI earnings boost

For about a year, investors have bid up megacap tech shares on the theory that their exposure to artificial intelligence will usher in a new era of elevated growth and efficiency. Now the companies need to prove it.

Microsoft Corp. and Alphabet Inc., two of the biggest players in AI-related software, will report after the market close, and Wall Street wants a stronger sense of when the rally-driving technology will start moving the needle for earnings and revenue. Both stocks have been supported by AI excitement; Microsoft is above a historic $3 trillion valuation, while Google’s parent company returned to all-time highs.