Meta, Microsoft reports lift AI-related stocks

(Reuters) -Shares in artificial intelligence and cloud-computing-related companies were rising sharply in late trade on Wednesday after Meta Platforms and Microsoft results beat Wall Street expectations.

The reports appeared to boost demand for shares in AI chip leader Nvidia Corp, which rose 2.8% in late trading, and chip rival Advanced Micro Devices, which rose 2%.

Shares in Amazon.com, which competes with Microsoft in cloud-computing and is due to report results on May 1, were up 3% with strong after-the-bell volume.

Google parent Alphabet shares were up more than 1% after the reports.

Shares in Microsoft soared more than 6% in late trading after it topped quarterly revenue expectations on strong Azure cloud-computing growth, reassuring investors its hefty AI investments were paying off.

Shares in social media company Meta Platforms were up more than 4%, after it also beat Wall Street estimates for first-quarter revenue, signaling that its AI-powered tools helped draw advertising dollars despite tariff-related economic uncertainty.

Shares in smaller AI-related tech company Super Micro Computer briefly rose sharply after the reports but then pared gains and were last up 0.7%. In the regular session on Wednesday Super Micro Computer shares had tumbled 11% after it slashed its revenue forecast.

Shares in C3.AI Inc were up 1% but volume was lighter.