Asia AM Brief: Microsoft and Meta Surge on AI Optimism, but Crypto AI Plays Show No Spark

Microsoft, Meta Rally on AI-Fueled Earnings, but Crypto AI Tokens Stay Flat

Shares of Microsoft (MSFT) and Meta soared in after-hours trading following stronger-than-expected earnings, driven by their growing artificial intelligence (AI) businesses. However, enthusiasm didn’t extend to crypto markets, where AI-related tokens showed muted action.

Microsoft’s cloud division posted a 27% year-over-year revenue jump to $46.7 billion, with Azure surpassing $75 billion in annualized revenue as AI workloads pushed its datacenter capacity beyond 2 gigawatts. Meta reported a 22% revenue increase to $47.5 billion and a robust 43% operating margin, thanks in part to AI-powered ad tools that lifted conversion rates and boosted engagement across its platforms.

Despite these gains, CoinGecko’s AI token index — which tracks assets like TAO, NEAR, RENDER, and ICP — declined 1.4%. The CoinDesk 20 index, a benchmark for major digital assets, was unchanged, trading just under 4,000.

Historically, AI tokens have rallied in sync with major tech earnings, particularly during Nvidia’s breakout in 2024 that pushed the category past $10 billion in market cap. But bitcoin’s resurgence in 2025 has drawn capital away from altcoins, shrinking the AI token sector to under $5 billion.

The Federal Reserve’s messaging also played a role in cooling risk appetite. While the central bank left interest rates unchanged, Fed Chair Jerome Powell warned that rising tariffs could drive inflation higher.

“Powell’s comments have injected uncertainty into the market,” noted market maker Enflux in a client note. “With risk appetite softening and policy signals becoming less clear, traders may remain on the sidelines until there’s more direction on inflation and monetary policy.”

Nvidia’s upcoming earnings, expected later in August, could offer the next major trigger for AI-linked crypto assets.

Market Snapshot:

• Bitcoin (BTC): Dipped below $116K after Fed comments before rebounding to ~$117,985.
• Ether (ETH): Rose 1.47% to hold above $3,800, supported by corporate treasury interest.
• Gold: Dropped 1.17% to $3,288.02 as strong U.S. economic data reduced safe-haven demand.
• Nikkei 225: Mixed performance as traders digested U.S. tariff headlines and awaited BOJ’s rate decision.
• S&P 500: Slipped 0.12% to 6,362.90 following Powell’s warning on inflation risk.