Microsoft is set to announce its fiscal fourth quarter earnings after the bell on Tuesday, with Wall Street eagerly anticipating the results of the company's substantial investments in artificial intelligence (AI). Data compiled by Bloomberg projects that Microsoft is expected to report earnings per share of $2.94 on revenue of $64.5 billion for the quarter. This marks an increase from the previous year's figures of $2.69 EPS and $56.2 billion in revenue.

Of particular interest is the expected cloud revenue of $36.8 billion, with Intelligent Cloud revenue, including Azure, forecasted to reach $28.7 billion. In the prior quarter, Microsoft highlighted that AI services contributed significantly to its cloud revenue growth, with AI adding 7 percentage points in the previous quarter compared to 6 points in Q2 and 3 points in Q1.

Microsoft's report comes on the heels of Alphabet's recent earnings announcement, where the company noted a rise in cloud revenue attributed partly to interest in AI products. Market analysts have observed Microsoft gaining market share from rivals Google and Amazon, boosted by its early lead in AI technologies.

Investors will also be keen to learn about Microsoft's future investments in AI. In the third quarter, the company reported capital expenditures of $14 billion, underscoring its commitment to expanding its AI infrastructure. These figures were paralleled by Alphabet's increased spending on capital expenditures, with a focus on AI technologies, totaling $13 billion in the last quarter.

The broader tech landscape continues to show positive growth, with shares of Microsoft up 13% year to date, Google up 22%, and Amazon up 23%. Microsoft's earnings announcement will shed further light on the impact of AI investments and its ongoing strategy in the evolving tech industry.