AI Earnings Fuel Microsoft and Meta Surge, but Crypto AI Tokens Lag Behind
Tech giants Microsoft and Meta posted strong Q2 earnings that sent their shares soaring in after-hours trading, thanks to booming demand for artificial intelligence services. However, the momentum failed to carry over into the crypto sector, where AI-related tokens remained subdued.
Microsoft reported a 27% year-over-year increase in cloud revenue, reaching $46.7 billion, with Azure surpassing $75 billion in annualized sales. This growth was powered by surging demand for AI workloads, pushing datacenter capacity beyond 2 gigawatts. Meta, meanwhile, delivered $47.5 billion in revenue — a 22% jump — alongside a 43% operating margin, driven by AI-enhanced advertising tools that boosted engagement across Facebook and Instagram.
Despite the bullish reports, CoinGecko’s AI token index — which includes top assets like TAO, NEAR, ICP, and RENDER — slipped 1.4%. The CoinDesk 20 index remained flat, holding just under 4,000.
Historically, earnings from tech leaders like Nvidia have boosted AI tokens, with the sector once surpassing a $10 billion market cap in 2024. But Bitcoin’s dominance in early 2025 has drawn capital away from altcoins, shrinking the AI token market to below $5 billion.
The subdued response may also reflect caution among traders following the Federal Reserve’s latest policy decision. While the Fed held interest rates steady, Chair Jerome Powell warned of tariff-driven inflation, casting uncertainty over future policy moves.
“Powell’s comments injected a degree of macro volatility,” wrote market maker Enflux in a note. “With risk appetite waning and policy signals less clear, markets may remain rangebound until there’s greater clarity on inflation and rate direction.”
All eyes now turn to Nvidia, which is set to report earnings later in August. A strong showing could revive enthusiasm for AI-linked crypto assets.
Market Recap:
- Bitcoin (BTC): Fell below $116K on Powell’s remarks, later recovering to around $117,985.
- Ether (ETH): Gained 1.47%, trading above $3,800, amid continued institutional buying.
- Gold: Dropped 1.17% to $3,288.02 as strong economic data dampened safe-haven demand.
- Nikkei 225: Mixed as traders assessed U.S. tariff policy and awaited BOJ’s rate stance.
- S&P 500: Declined 0.12% to 6,362.90 following Fed comments on inflation risks.
