AI dominance race: META vs MSFT

What happened: Microsoft (MSFT) and Alphabet (GOOGL) are intensifying their AI dominance race, with both companies investing billions. Microsoft offers a lower P/E ratio and remains the second-largest cloud provider, while Alphabet's Google is the third-largest but boasts impressive growth.

Market impact: Tech earnings season kicked off with these two giants, influencing AI stocks. Microsoft's lower valuation and cloud dominance may attract value investors, while Alphabet's growth potential could lure growth-oriented investors.

What to watch next: Microsoft's next earnings release on July 25 and Alphabet's on July 26 will provide updates on their AI progress and cloud market share. Additionally, any AI-related product announcements or partnerships from either company could shift the narrative.