Microsoft (MSFT) is set to report its fourth quarter earnings after the market close on Tuesday. Ali Mogharabi, WestEnd Capital Management's senior equity analyst, joins Morning Brief to discuss his expectations for the results and how he anticipates AI will impact them.

Mogharabi notes that AI is still in "the early stages," and he expects continued investment in the technology from Microsoft. He references other tech companies like Alphabet (GOOG, GOOGL), which saw 29% growth in their cloud businesses, describing this as "good for Microsoft." He suggests this trend indicates that "the cloud providers, including Microsoft of course, will probably see demand for their cloud go up thanks to AI," adding that he's "pretty optimistic" about Microsoft's cloud and AI businesses in the upcoming report.

"I'm sure you remember last week, Sundar Pichai, CEO of Alphabet, he actually said there may be overinvestments on that front [AI], but that's actually much better than underinvesting and falling behind,'" Mogharabi tells Yahoo Finance. "Microsoft probably has the same type of strategy moving forward," he adds.

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This post was written by Angel Smith