(NASDAQ: MSFT) has rewarded investors nicely in 2023. Shares of the software giant have jumped 38% as of this writing, and the stock seems capable of delivering more gains based on the takeaways from its latest quarterly report.

Microsoft released fiscal 2024 first-quarter results (for the three months ended Sept. 30) on Oct. 24. The company's revenue and earnings easily crushed Wall Street's expectations. Microsoft's earnings jumped 27% year over year to $2.99 per share on a revenue jump of 13% to $56.5 billion. Analysts would have settled for $2.65 per share in earnings on revenue of $54.5 billion.

However, a towering performance from Microsoft's cloud business last quarter drove its number past expectations, driven mainly by the growing adoption of the company's artificial intelligence (AI) services. A closer look at the performance of Microsoft's cloud business last quarter tells us that AI has started moving the needle in a tangible way for the company, and it could turn out to be a big catalyst for the stock over the next three years.

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Source Fool.com