Asia Morning Snapshot: MSFT, Meta Jump on Robust AI Results; AI-Themed Crypto Tokens Miss the Ride

AI Stocks Surge on Earnings, But Crypto AI Tokens Miss the Rally

Microsoft (MSFT) and Meta delivered blowout earnings on the back of AI momentum, sending their shares sharply higher in after-hours trading. But the bullish sentiment didn’t carry over to crypto markets, where AI-linked tokens remained under pressure.

Microsoft’s cloud division grew 27% year-over-year to $46.7 billion, fueled by demand for AI infrastructure. Azure’s annualized revenue surpassed $75 billion, with the company now operating over two gigawatts of datacenter capacity. Meta also beat expectations, reporting $47.5 billion in revenue and a 43% operating margin, boosted by AI-driven ad performance and stronger engagement across its platforms.

Despite those gains, CoinGecko’s AI token category — including NEAR, TAO, RENDER and ICP — dropped 1.4% on the day. The CoinDesk 20 index was flat, hovering under 4,000. The lackluster performance follows a broader retreat in altcoins, which have struggled to keep pace with bitcoin’s rise in recent months.

The AI token category previously surged alongside Nvidia’s record-breaking run in 2024, pushing its collective market cap above $10 billion. That figure has now dropped below $5 billion, reflecting fading speculative interest amid tighter macro conditions.

Wednesday’s hawkish commentary from Fed Chair Jerome Powell may have added to the risk-off tone. While the Fed kept rates unchanged, Powell warned that tariffs could fuel further inflation.

“Policy uncertainty is keeping crypto traders on the sidelines,” said market maker Enflux in a note. “Until there’s more clarity from the Fed, AI tokens may struggle to regain momentum.”

Investors will now look to Nvidia’s upcoming earnings report later in August for a potential spark.

Market Rundown:

Bitcoin (BTC): Fell below $116,000 before rebounding; last seen around $117,985.
Ether (ETH): Up 1.47% to $3,800+, bolstered by continued treasury demand.
Gold: Down 1.17% to $3,288.02 amid stronger U.S. economic data.
Nikkei 225: Mixed as traders digest U.S. tariff news and await BOJ decision.
S&P 500: Edged down 0.12% to 6,362.90 following Powell’s warning on inflation.