Microsoft (NASDAQ: MSFT) is up nearly 9% to $430.11 on the day. All thanks to strong earnings with third quarter adjusted EPS OF $3.46 a share on revenue of $70.1 billion. Meanwhile, analysts were only looking for adjusted EPS of $3.

U.S. technology-related stocks including many involved in artificial intelligence rose sharply on Thursday following stronger-than-expected results from Microsoft and Meta Platforms, while investors awaited results from Apple and Amazon.

U.S. stock index futures rose on Thursday, powered by Magnificent Seven heavyweights Microsoft and Meta as their strong quarterly results pointed to a resilient outlook for the technology sector. Microsoft surged nearly 9% in premarket trading after it forecast stronger-than-expected quarterly growth for its cloud-computing business Azure.

Microsoft on Wednesday said its profits rose 18% for the January-March quarter, driven by its growth in its cloud computing and artificial intelligence business in a turbulent time for the tech sector.

Ted Mortonson, managing director at Baird, discusses Microsoft’s better-than-expected third-quarter results. He joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology." (Source: Bloomberg)

Microsoft's blowout results in the latest quarter calmed investor worries in an uncertain economy and lifted its shares 7% after hours.