Microsoft's results reinforce my conviction that the AI investment cycle is still intact. The market is no longer rewarding AI spending alone—it wants clear monetisation. Azure's 43% growth and stable capex show Microsoft is converting AI investments into real earnings, which is exactly what investors have been waiting to see.

Meta's weak free cash flow doesn't make me bearish on AI. To me, it highlights execution risk rather than the end of the AI trade. Companies that can demonstrate profitable AI deployment will continue to outperform, while those with rising spending but slower returns may face more pressure in the near term.

I'm staying constructive on the sector and will continue accumulating quality names during volatility, especially semiconductor and AI infrastructure leaders. With Apple and Amazon reporting next, I think this earnings season will further separate the true AI winners from the rest.