The AI Trade Just Split In Two

Daily video by Korra · 29 October 2026

Overnight, the AI story that has dominated markets all month just split in two. Microsoft posted blockbuster earnings on the back of its AI boom. At the…

Transcript

Overnight, the AI story that has dominated markets all month just split in two. Microsoft posted blockbuster earnings on the back of its AI boom. At the same time, Google is facing a four hundred billion dollar stock wipeout for failing to do the same.

Microsoft’s CEO said he's ‘never been more confident,’ and their results back it up. But Google's earnings disappointed, and the pre-market reaction is brutal. This is happening while upstream players like Samsung keep shattering profit records on chip demand. The boom is real, but the value is not being captured equally.

My read: this is the end of the 'just buy all AI' trade. For weeks we've talked about the costs. Now we're seeing the first big divergence between the winners and losers in execution. The market is no longer rewarding participation in the theme; it's rewarding profits.

The Fed held rates yesterday, taking macro off the table for a moment and putting the focus squarely on earnings like these. This divergence is the new chapter for the AI funding story I'm tracking on korra dot finance. Watch whether this split between Microsoft and Google drags the whole Nasdaq down today.

Information only, not investment advice.