(NASDAQ: MSFT) just gave investors a detailed update on its operating and financial trends, and the news was mostly positive. Sales growth accelerated when compared to the prior quarter, and earnings are improving by more than 20%.

There was some less-than-great news in the report, too, including continued shrinking demand in the PC industry and for consumer electronic devices in general. Let's take a closer look and see if the good outweighs the bad here.

There's no doubt that the hype cycle is running hot around artificial intelligence (AI) right now, potentially raising the risk that investors will overpay for tech that fails to live up to impossibly high expectations. But Microsoft's report should ease some of those fears.

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Source Fool.com