Microsoft and Meta Platforms drove Wall Street higher after delivering profits for the start of the year that were even bigger than analysts expected.

U.S. stocks rallied on Thursday, with the Dow and S&P 500 poised for their eighth straight session of gains, after strong results from megacaps Microsoft and Meta eased concerns about artificial intelligence spending.

Stocks rallied as May kicked off, led by the tech-heavy Nasdaq after better-than-expected earnings from Microsoft and Meta Platforms.

Microsoft says AI now writes up to 30% of its code, while Meta predicts AI will handle half of Llama development within a year.

Microsoft CEO Satya Nadella made the comments during a conversation with Meta CEO Mark Zuckerberg. Meta says it aims to get half its code written by AI by the end of 2026.

Microsoft and Google, say AI is writing more of their code — and Mark Zuckerberg predicts AI could handle half of Meta's dev work within a year.