Investors are becoming more selective about AI-linked stocks, rewarding companies such as Microsoft and Amazon for showing clear returns from their investments while penalising Meta and Alphabet for rising spending and weaker cash flows. Despite strong earnings growth across the US and Europe, European equities have outperformed as gains broaden beyond technology into financials, energy and healthcare.

Microsoft and Meta earnings are reshaping the AI trade as investors reward AI monetization over spending. Here's what it means for AI and leveraged ETFs.

Microsoft posted $90B in Q4 revenue and 43% Azure growth. AI stocks rallied hard. AI crypto tokens barely moved. Here's what that split means for