I want to go back to what I was talking to Mandeep Singh about, that comment on the call from CFO Amy heard at Microsoft saying to monetize all the investment in data center is a 15 year timeline. How did you react to that?
Well, thanks for having me. I actually thought they did an excellent job of really threading the needle, especially on the CapEx side. I think what they did over and over again is really emphasize that this spending is going to be very, very meticulous. And what they did is it's predicated on demand. They constantly look for signals and spend accordingly. And again, a lot of these signals are near-term, but a lot of them are very long term with north of 10 to 15 year parameters. I think they're spending for the future and I think they mak they're going to maximize the opportunity. Management has said over and over again that the risk of missing out on the air

trade greatly outweighs the risk of
overspending. And I think they're excellent stewards
of capital, obviously, and I would trust them with whatever CapEx plans they
have. Just really quick on Microsoft.
You know, they seem a victim of you better not miss estimates at all in this
environment. Is that fair?
Yeah, it was definitely fair. So Azure grew 30% year over year, which
is actually tremendous for most companies.
But considering that Microsoft is probably the second most crowded long in
all of tech, outside of NVIDIA, it was priced it was priced to perfection even
on this recent pullback. So again, it was at the low end of
guidance. They they put out 30 to 31.
We heard that the buy side was closer to 31 to 32.
Initially, the stock did sell off 8% as a kneejerk reaction.
But really, as the conference calls started to get underway, they really did
an incredible job of explaining exactly

where the weakness came from.
And they are on to exactly Europe, given the geopolitical risk there and the
economy. That was a great spot to point out.
And then more importantly, and this is when the stock really started to
rebound, it's a capacity issue. This is not a demand problem.
They simply don't have enough chips and infrastructure to satisfy this air
demand. So I think once they alleviated that,
the stock really rebounded and it's almost back to flat.
And then one other thing that when you go a little deeper, made a lot of sense.
This really stood out. Air demand actually helped grow Azure by
8% this quarter. Last quarter was 7%.
So you're actually seeing an acceleration in air demand that's really
starting to provide real ROI, which I don't think is going to stop anytime
soon.

Microsoft’s Azure Growth Slows

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