US bars Microsoft and Adobe from permanent visa program over system abuse

Microsoft's Azure division is exploring 20% cost cuts, according to a report, to offset AI data center spending and retain talent. The company disputes the characterization, citing routine scenario planning. Azure revenue grew 40% YoY to $101.9B. Leadership changes include Arun Ulag overseeing key cloud units. MSFT stock is up 12% YTD.

Microsoft's stock hit a record high of $543.45, with a market cap exceeding $4 trillion. The company reported strong cloud revenue growth and unveiled its Maia 300 AI chip, aiming to reduce reliance on external chipmakers. Microsoft's stock has surged 39% since July, outpacing some tech rivals but trailing the Nasdaq-100 index.

Microsoft reported $130B in new data center leases, bringing total commitments to $329.1B, up from $196.6B. The company attributes this to strong demand for AI infrastructure, with leases expected to support long-term needs. Costs will appear on the balance sheet upon payment initiation.

Microsoft (MSFT) shares rose 1.0% to $546.74 on October 13. The company announced plans for Maia 300, an AI chip expected to increase throughput and efficiency. Microsoft projects up to seven times the throughput of Maia 200 and 40% more tokens per megawatt. The chip's impact on costs and earnings remains uncertain. MSFT shares trade 7.72% below GuruFocus's GF Value estimate of $592.48.

Adobe Inc. (ADBE) reported record Q3 revenue of $6.76B, up 13% YoY, but deferred price hikes and increased free access to apps. CEO Shantanu Narayen defends strategy, aiming for long-term user growth. Analysts like Wells Fargo's Michael Turrin cite 'cracks,' citing slower ARR growth and competition from free tools like Canva. Adobe targets 10.2% ARR growth for FY2026, but faces leadership changes and market pressure.

Microsoft (MSFT) plans to use its own Maia chips for AI models, reducing reliance on Nvidia. The Maia 300, launching in 2027, aims for lower costs and greater efficiency. The shift primarily affects the Intelligent Cloud segment, which generated $137.8B in FY2026. Microsoft's capital spending is $115.9B over the past year, with no savings figure provided for Maia.