AI-Driven Earnings Power Microsoft, Meta Stock Gains, but Crypto AI Tokens Lag Behind
Microsoft (MSFT) and Meta surged in after-hours trading following strong quarterly results, driven by accelerating demand for artificial intelligence (AI) products. But enthusiasm for AI didn’t spill into crypto markets, where AI-linked tokens failed to catch a bid.
Microsoft reported $46.7 billion in cloud revenue, a 27% year-over-year increase, fueled by robust demand for AI workloads. Azure alone crossed $75 billion in annual revenue, supported by over two gigawatts of datacenter capacity. Meta posted $47.5 billion in revenue with a 43% operating margin, crediting AI-driven ad improvements for the boost in conversion rates and user engagement across Facebook and Instagram.
Still, AI-focused cryptocurrencies remained under pressure. CoinGecko’s AI token index — which includes TAO, NEAR, RENDER, and ICP — fell 1.4% on the day. The CoinDesk 20 index, tracking the broader crypto market, was flat, trading just below 4,000.
The underperformance comes despite a history of crypto AI tokens moving in tandem with big tech earnings, especially during Nvidia’s rally in 2024 that pushed the category’s market cap above $10 billion. That figure has since shrunk to under $5 billion, as rising bitcoin dominance and macroeconomic uncertainty weigh on altcoins.
One contributing factor: the Federal Reserve’s latest policy stance. While the central bank held rates steady, Chair Jerome Powell warned that new tariffs could stoke inflation, rattling risk sentiment.
“Powell’s comments introduced a level of uncertainty that’s making investors more cautious,” market maker Enflux said in a note. “Crypto markets, including the AI sector, may remain range-bound until there’s clearer direction on inflation and policy.”
Looking ahead, Nvidia’s earnings report due later in August could serve as the next major catalyst for both tech stocks and AI-related crypto assets.
Market Highlights:
- Bitcoin (BTC): Briefly dropped below $116K after Powell’s remarks; recovered to ~$117,985.
- Ether (ETH): Trading above $3,800, up 1.47%, with continued interest from corporate treasuries.
- Gold: Fell 1.17% to $3,288.02 as strong U.S. data dampened demand for safe havens.
- Nikkei 225: Mixed in Asia as traders reacted to U.S. tariffs and awaited BOJ’s rate decision.
- S&P 500: Dipped 0.12% to 6,362.90 as Powell hinted at persistent inflation concerns.
