Investors grow concerned that AI expenses and a looming price war in cloud services could blow up its profits.

Microsoft shares dropped 6% after issuing weak current-quarter guidance. The software giant topped Wall Street's fiscal second-quarter estimates, posting earnings of $3.23 per share on $69.63 billion in revenue.

Microsoft is a key backer of OpenAI and it has committed to spending $80 billion on AI infrastructure this year in order to expand its global network of high-powered data centers to meet demand for the specialized chips required to train and run AI models.

Tesla, IBM and Meta Platforms helped lead most U.S. stocks higher on Thursday following a rush of profit reports from some of the country’s most influential companies. The S&P 500 rose 0.5%, as four out of every five stocks in the index climbed.