When Nancy Pelosi makes a move in the stock market, people notice.
The former Speaker of the House built a reputation for remarkably well-timed stock deals. Her portfolio decisions often trigger intense scrutiny from retail investors trying to decipher what Washington’s power players know and the rest of us don’t.
According to this Nancy Pelosi stock tracker, her stock portfolio is valued at about $32.5 million. Notably, it owns two mega-cap tech stocks that also pay dividends. These two stocks, Microsoft and Alphabet, represent 22% of Nancy Pelosi’s portfolio in 2026.
Both dividend-paying tech giants are knee-deep in the AI revolution and generating massive amounts of cash. In addition, they are strategic bets on the future of artificial intelligence and cloud computing.
Let me break down why these two stocks matter and what’s really driving their businesses right now.
Microsoft just finished a quarter that would make most CFOs weep with joy.
And here’s the thing: Demand is so strong that Microsoft can’t keep up. CEO Satya Nadella admitted they are capacity constrained and will remain so until the end of the fiscal year.
Think about that for a second. According to CNBC, Microsoft spends 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 rewarded in real dollars.
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Microsoft 365 Copilot, their AI assistant for office workers, is now used by over 90% of Fortune 500 companies.
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The product is less than 2 years old and already generating significant revenue growth.
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Copilot is priced at $30 per user per month on top of existing Microsoft 365 subscriptions.
This is pure margin expansion.
GitHub Copilot, the AI coding assistant, now has 26 million users. Developers accept hundreds of thousands of lines of AI-generated code suggestions every month, making it a 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 Your Money Is Doing
Microsoft’s remaining commercial performance obligation, essentially the contracted revenue that has not yet been recognized, reached $392 billion.
This number has almost doubled in two years. The weighted average duration of these contracts is only about two years, meaning customers are committing to spend heavily over relatively short periods of time.
While Microsoft is making headlines for AI, let’s not forget that it’s also a dividend maker. According to Yahoo Finance, the company pays a quarterly dividend of $0.91 per share, yielding about 0.79% at current prices.
That won’t make income investors swoon, but here’s what matters: 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 annually on AI infrastructure. Most companies should choose. Microsoft does not.
Now let’s talk about Alphabet, which just reported its first quarter with $100 billion in revenue. The company grew revenue 16% to $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 fuss about AI potentially destroying Google’s search business. ChatGPT was supposed to be Google’s killer. Instead, Google’s search revenue is accelerating.
Why? Because Alphabet has figured out how to make AI enhance search, not replace it.
CEO Sundar Pichai dropped some fascinating numbers for AI Overviews on the earnings call. He stated:
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Increasing queries it’s actually speeding up because of these AI features, not decreasing.
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The AI fashion the feature, which allows users to have conversational interactions with search, doubled the number of queries during the quarter.
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He already had 75 million daily active users and generates a progressive increase in the total number of queries.
Translation: People are searching more, not less, as AI makes it easier to get answers.
And here’s the bottom line: Alphabet monetizes these AI search experiences at roughly the same rate as traditional search. Advertisers are using AI to reach new customers they couldn’t target before.
For years, Google Cloud has lagged behind in the cloud wars behind Microsoft Azure and Amazon Web Services. Not anymore.
Google Cloud grew 34% to reach $15.2 billion in revenue. Operating margin rose from 17% a year ago to nearly 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 artificial intelligence labs use Google Cloud.
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Anthropic, one of the most popular AI startups, recently committed to using up to 1 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 the previous version. Over 230 million videos have been generated with Google’s Veo video creation model.
The rest of Google Cloud — 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 last two years combined.
Alphabet’s dividend is newer than Microsoft’s, but the company has the cash flow to support aggressive growth. The company generated nearly $74 billion in free cash flow over the past twelve months.
The quarterly dividend currently stands at $0.21 per share, yielding approximately 0.25%. It’s modest, but look at the trajectory.
Alphabet raised its dividend 5% this year and has plenty of room to keep hiking given its cash generation.
Analysts expect the annual dividend per share to rise 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 repurchased $11.5 billion of 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 ongoing. The demand is tangible and measurable in terms of signed contracts in the billions of dollars.
Microsoft AI products are already generating billions every quarter. Google’s AI features drive query growth and maintain search monetization rates.
The dividend angle matters because it shows that Alphabet and Microsoft are mature, cash-generating businesses that are winning the AI race. They pay dividends and buy back shares while outspending everyone on AI infrastructure.
If Pelosi’s track 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 this description.
The AI revolution is expensive. Hundreds of billions of infrastructure spending is needed. 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 actual customer commitments and current revenues, not promises of future profits. When you have capacity constraints because demand exceeds supply, that’s the best problem a business can have.
Related: Google joins rare Wall Street valuation club
This story was originally published by TheStreet on January 16, 2026, where it first appeared in the Investing section. Add TheStreet as a favorite source by clicking here.