AI-Fueled Earnings Boost MSFT and Meta, But Crypto AI Tokens Lag

Microsoft (MSFT) and Meta soared in after-hours trading following strong second-quarter earnings powered by artificial intelligence, but the rally failed to lift AI-linked crypto tokens.

Microsoft reported a 27% year-over-year jump in cloud revenue to $46.7 billion, driven by surging demand for AI workloads. Its Azure division crossed $75 billion in annualized revenue, supported by a datacenter footprint exceeding two gigawatts. Meta posted a 22% increase in revenue to $47.5 billion and a 43% operating margin, as AI-enhanced ad models boosted conversions and user engagement across Facebook and Instagram.

Despite the bullish tech earnings, CoinGecko’s AI token index — which includes tokens like TAO, NEAR, ICP, and RENDER — slipped 1.4%. The CoinDesk 20 index remained largely flat, hovering just below the 4,000 mark.

AI-related crypto assets typically move in tandem with big tech, as seen during Nvidia’s explosive rally in 2024 that helped push the sector’s market cap above $10 billion. But Bitcoin’s rising dominance throughout 2025 has weighed on altcoins broadly, cutting that figure by more than half.

Traders may be staying cautious following the Federal Reserve’s latest policy stance. Although the Fed held rates steady, Chair Jerome Powell warned that tariff-driven inflation pressures could intensify, adding macro uncertainty.

“With Powell suggesting inflation risks may be mounting, investor appetite for risk has dimmed,” market maker Enflux wrote in a note. “Until there’s more clarity on inflation and policy direction, we expect markets to remain rangebound.”

Investors will next turn to Nvidia’s earnings later in August to gauge whether strong results from the chipmaker could reignite momentum in the AI crypto category.

Market Snapshot:

• Bitcoin (BTC): Briefly fell below $116,000 amid Fed-related volatility; trading just under $118,000.
• Ether (ETH): Up 1.47% to $3,800+, supported by corporate treasury demand.
• Gold: Dropped 1.17% to $3,288.02 on solid U.S. data, reducing safe-haven demand.
• Nikkei 225: Mixed as traders digest U.S. tariffs and await Bank of Japan’s rate decision.
• S&P 500: Down 0.12% to 6,362.90 after Powell reaffirmed inflation concerns.