When Nancy Pelosi makes a move in the stock market, people notice.
The former Speaker of the House has built a reputation for remarkably timely stock trading. Her portfolio decisions often spark intense scrutiny from retail investors trying to decode what Washington power players know that the rest of us don’t.
According to this Nancy Pelosi stock tracker, her equity portfolio is valued at around $32.5 million. Notably, it owns two mega-cap technology stocks that also pay dividends. These two stocks, Microsoft and Alphabet, account for 22% of Nancy Pelosi’s portfolio in 2026.
The two dividend-paying tech giants are knee deep in the AI revolution and generating huge amounts of cash. Moreover, they are strategic bets on the future of artificial intelligence and cloud computing.
Let me break down why these two stocks are important and what is really driving their businesses right now.
Microsoft just wrapped up a quarter that would make most CFOs weep with joy.
And here’s what’s important: the demand is so strong that Microsoft can’t keep up. CEO Satya Nadella admitted that they have limited capacity and will remain so until at least the end of their fiscal year.
Think about that for a second. According to CNBC, Microsoft is spending nearly $35 billion per quarter on data centers, GPUs, and AI infrastructure, and still can’t build fast enough to meet customer demand.
The AI bet is already paying out in real dollars.
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Microsoft 365 Copilot, their AI assistant for office workers, is now used by more than 90% of Fortune 500 companies.
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The product is less than two years old and is already driving significant revenue growth.
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Copilot is priced at $30 per user per month, in addition to existing Microsoft 365 subscriptions.
That’s pure margin expansion.
GitHub Copilot, the AI coding assistant, now has 26 million users. Developers are accepting hundreds of thousands of lines of AI-generated code suggestions every month, making it mission-critical infrastructure for how modern software is built.
CFO Amy Hood made a crucial point on the earnings call that investors need to understand.
Related: Microsoft’s $80B AI shift: What to do with your money
Microsoft’s remaining commercial performance obligation, essentially the contracted revenue that has not yet been recognized, reached $392 billion.
That number has almost doubled in two years. The weighted average duration of those contracts is only about two years, which means that customers are committing to massive spending over relatively short periods of time.
While Microsoft gets headlines for AI, let’s not forget that it is also a dividend producer. According to Yahoo Finance, the company pays a quarterly dividend of $0.91 per share, which yields about 0.79% at current prices.
That won’t make income investors swoon, but here’s what’s important: Microsoft has increased its dividend every year since 2004, according to Fiscal.ai.
This company can easily afford to keep raising its dividend while spending over $100 billion a year on AI infrastructure. Many companies have to choose. Microsoft does not.
Now let’s talk about Alphabet, which just reported its first quarter of revenue of $100 billion. The company grew revenue by 16% to reach $102.3 billion, with Google Search alone generating $56.6 billion, up 15%.
Here’s what skeptics get wrong about Alphabet. There has been endless hand-wringing about AI potentially destroying Google’s search business. ChatGPT was supposed to be the Google killer. Instead, Google’s search revenue is accelerating.
Why? Because Alphabet has figured out how AI enhances search, not replaces it.
CEO Sundar Pichai dropped some fascinating numbers for AI Overviews on the earnings call. He stated:
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Growth of questions it’s actually accelerating because of these AI features, not slowing down.
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the AI Fashion feature, which allows users to have conversational interactions with the search, doubled the number of questions during the quarter.
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She already has 75 million daily active users and is driving incremental growth in total queries.
Translation: people are searching more, not less, because AI makes it easier to get answers.
And here’s the kicker—Alphabet is monetizing these AI search experiences at about the same rate as traditional search. Advertisers are using AI to reach new customers they couldn’t target before.
For years, Google Cloud has been the laggard in the cloud wars, behind Microsoft Azure and Amazon Web Services. Not anymore.
Google Cloud grew 34% to reach $15.2 billion in revenue. The operating margin grew from 17% a year ago to almost 24% this quarter.
The secret? Google’s own AI infrastructure and AI models.
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Google offers the widest range of AI chips in the industry, including both NVIDIA GPUs and its own custom TPU chips.
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Nine of the ten largest AI labs use Google Cloud.
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Anthropic, one of the hottest AI startups, recently committed to using up to one million Google TPUs.
Google’s own AI models are gaining serious traction.
Gemini 2.5 Pro, their latest model, processed 1.3 quadrillion tokens, 20 times faster than their previous version. More than 230 million videos have been generated with Google’s Veo video creation model.
Google Cloud’s backlog—revenue contracted but not yet recognized—reached $155 billion, up 82% year over year. CFO Anat Ashkenazi pointed out that Google Cloud signed more billion dollar deals in the first nine months of 2025 than in the previous two years combined.
Alphabet’s dividend is newer than Microsoft’s, but the company has the cash flow to support aggressive increases. The company generated nearly $74 billion in free cash over the trailing twelve months.
The quarterly dividend is currently $0.21 per share, which yields about 0.25%. That’s modest, but look at the trajectory.
Alphabet raised its dividend by 5% this year and has plenty of room to grow given its cash generation.
Analysts forecast the annual dividend per share to increase to $1.13 in 2029, from $0.84 in 2025, according to Tikr.com data.
The company ended the quarter with $98.5 billion in cash and marketable securities. They bought back $11.5 billion in stock during the quarter. This company can easily afford to return more money to shareholders.
Both Microsoft and Alphabet are at an inflection point. Building the AI infrastructure is underway. The demand is tangible and measurable in terms of signed contracts in the billions of dollars.
Microsoft’s AI products are already generating billions every quarter. Google’s AI features are driving query growth and maintaining search monetization rates.
The dividend angle is important because it shows Alphabet and Microsoft are mature, cash-generating businesses that are winning the AI race. They are paying dividends and buying back stock while simultaneously outspending everyone on AI infrastructure.
If Pelosi’s record tells us anything, it’s that she tends to buy quality companies when the market underestimates their short-term momentum. Both Microsoft and Alphabet fit that description.
The AI revolution is expensive. It requires hundreds of billions in infrastructure spending. Only a few companies have the balance sheets and cash flow to compete on this scale. Microsoft and Alphabet are two of them.
And unlike the dot-com bubble, this spending is backed by current customer commitments and revenues today, not promises of future profits. When you are constrained by capacity because demand exceeds supply, that is the best problem a business can have.
Related: Google joins rare valuation stage club on Wall Street
This story was originally published by TheStreet on January 16, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.