Looking for a reason to stay bullish on AI stocks? Microsoft and Meta just handed it to you on a silver platter.

After markets closed on Wednesday, two of the biggest names in tech, Microsoft (MSFT) and Meta Platforms (META), dropped earnings reports that blew past Wall Street’s expectations.

And almost instantly, shares of AI and cloud-related companies started lighting up the after-hours ticker like it was December.

Microsoft’s AI Play Pays Off, Big Time

Microsoft shares soared over 6% in late trading after the company reported stronger-than-expected quarterly revenue.

The secret sauce? Continued strength in its Azure cloud-computing platform, which has become the heart of Microsoft’s multibillion-dollar AI push. Investors were clearly reassured that all those AI infrastructure investments are starting to pay off, and then some.

In short, Microsoft didn’t just meet expectations. It proved that its AI-heavy strategy is working.

Meta Rides the AI Advertising Wave

Meta also flexed some AI muscle. Shares jumped over 4% after the company posted better-than-expected Q1 revenue, largely thanks to its AI-powered ad tools.

Despite the murky global economic backdrop and persistent tariff anxiety, advertisers are still spending, and Meta’s smart targeting tools are helping them spend smarter.

AI isn’t just changing how ads are served; it’s changing how ad dollars are earned. And Meta seems to be at the center of that shift.

When Giants Move, Everyone Feels It

And that’s exactly what happened. Nvidia (NVDA) rose 2.8% in after-hours trading. Not surprisingly, given that it makes the AI chips powering much of this revolution.
Advanced Micro Devices (AMD) followed suit, by climbing up 2%.

Amazon (AMZN), set to report earnings on May 1, climbed 3% as traders bet it will show strong cloud performance too.

Even Alphabet (GOOGL) got a bump, rising over 1%.

And while Super Micro Computer (SMCI) initially surged on the news, it gave back most of its gains and was up just 0.7% by the end of after-hours trading.

That came after a rough regular session where it dropped 11% due to a disappointing revenue forecast, a reminder that even AI darlings can stumble.

AI isn’t Hype, It is Revenue

This earnings season is proving one thing loud and clear: AI isn’t hype, it is revenue.

Microsoft and Meta have shown that strategic AI investments can drive tangible results, even in a choppy economic climate.

So if you’ve been sitting on the fence about adding AI or cloud-computing stocks to your portfolio, this might be your cue.

Look beyond the headline gains and pay attention to the fundamentals: solid growth, real product integration, and increasing enterprise demand.