The first big test of the artificial intelligence spending boom split sharply overnight. Microsoft reported revenue of about $92.3 billion for its latest quarter, up 19 per cent on a year earlier and ahead of expectations, with its Azure cloud platform growing 48 per cent to $33.17 billion. Its shares rose about 3 to 4 per cent in after-hours trading. Alphabet's revenue rose 25 per cent to about $127.6 billion, with Google Cloud more than doubling to $30.7 billion, but revenue came in slightly below forecasts, and capital spending guidance of $195 to $205 billion, with free cash flow reported at minus $9.1 billion, spooked investors. Alphabet shares fell about 9 to 10 per cent after hours, wiping nearly $400 billion off its market value according to Reuters.

Asian markets give up their gains

The split verdict rippled into Asia on Thursday. Reuters reported Asian shares gave up earlier gains, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.7 per cent and Japan's Nikkei trimming its gains to 0.3 per cent. South Korea's Kospi fell 2.6 per cent as Samsung slid more than 4 per cent despite record AI-chip-driven profits; mainland Chinese blue chips fell 0.9 per cent, Hong Kong's Hang Seng rose 0.2 per cent and Nasdaq futures fell about 1 per cent.

Why two share prices matter more widely

The contrast matters because both companies are the biggest customers for the whole AI supply chain. Chipmakers had been celebrated a day earlier for selling the equipment the AI boom needs; overnight, investors asked whether buyers can keep paying at this pace. After-hours moves are not closing prices, and Thursday's session may change the picture.

Sources: Reuters via 93-5 The Lloyd, WEEX TradFi Daily, Samuel & Co Trading.