Microsoft (MSFT) shares lost some of the recent momentum generated by its push for artificial intelligence (AI) as the comꦓpany's fourth quarter earnings report for fiscal year 2023 highlighted a slowdown in its Azure cloud and Windows PC businesses.

The company's share price dropped by as much as 4% in after-hours trading Tuesday despite overall earnings beating analyst estimates. MSFT stock started Wednesday with pre-market trades 🌠up 1.🐟7%.

Slowdown In Cloud, Legacy PC Business

Azure made up more than half of Microsoft's $110 billion cloud revenue, the company said during the earnings call, the first time Azure numbers were broken out. Microsoft's Cloud business segment that rivals Amazon Web Services (AMZN) and Google Cloud (GOOGL) was still at the heart of the company's earnings. Cloud quarterly revenue of $30.3 billion was up 21% year-over-year, but this was lower than analysts' expectations, according to a CNBC survey.

There were also some disappointing figures for the company's legacy personal computing business with revenue in the segment down 4% to $13.9 billion. That was driven by a 12% drop in its Windows OEM (Original Equipment Manufacturer licensing business) and a 20% decline for devices.

The Redmond, Washington-based firm reported revenue of $56.2 billion, while net income grew 20% to $20.1 billion. Earnings per share at $2.69, beat analyst estimates of $2.55.

Microsoft's AI Bet Yet To Impress

Microsoft gained early ground in AI over big tech rivals, thanks to its partnership with ChatGPT maker OpenAI, and continues to 澳洲幸运5官方开奖结果体彩网:double down on its transition to 澳洲幸运5官方开奖结果体彩网:generative AI technologies. The recent announcement of a 澳洲幸运5官方开奖结果体彩网:premium subscription model for an AI-driven version of Microsoft's 365 product could drive new revenuesﷺ in the future.

"Organizations are asking, not only how, but how fast they can apply this next generation of AI to address the biggest opportunities and challenges they face," said Microsoft CEO Satya Nadella.

However, some analysts were less impressed by the pace of the company's AI transition and questions will remain over the company's current valuation of 38x 澳洲幸运5官方开奖结果体彩网:price-to-earnings.

“It’s very obvious that the enterprise now is still in this optimization stage of looking at their cloud spend. So that’s a little bit disappointing. People were looking at a higher number there,” Baird analyst Ted Mortonson told Yahoo Finance.

The company's bet on AI has seen its stock rise roughly 46% since the beginning of this year, more than double the S&P 500 over the same period.