12:02 PM EST, 01/28/2025 (MT Newswires) -- Microsoft ( MSFT ) is expected to post "solid" fiscal Q2 results, though the focus will likely be on the technology giant's artificial intelligence strategy amid growing competition, Oppenheimer said Tuesday.

Microsoft ( MSFT ) is scheduled to report fiscal Q2 results Wednesday. Oppenheimer expects earnings of $3.16 a share on revenue of about $69.40 billion. Wall Street is looking for $3.13 and $69 billion, respectively, according to Oppenheimer.

"Microsoft ( MSFT ) was the dominant AI infrastructure and enterprise AI provider, but peers have caught up and in some cases surpassed it, increasing competition," Oppenheimer analyst Timothy Horan said in a note to clients.

A "major unknown" is how does Microsoft ( MSFT ) account for OpenAI revenue and expenses, and how will this change with the newly announced Stargate relationship and the ChatGPT parent's move to a for-profit, Horan said.

Microsoft ( MSFT ) needs to "copy" Amazon ( AMZN ) Web Services' AI platform strategy of easy-to-use tools supporting multiple large language models and accelerators, according to the note.

Microsoft ( MSFT ) shares were up 1.8% in recent trading.

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