What’s going on here?

Microsoft, Meta, and Tesla all reported mixed results, but hey – at least they have each other to lean on.

What does this mean?

Microsoft might’ve surpassed revenue expectations, but its closely watched cloud business picked up by less than hoped last quarter. That could indicate that the firm’s AI strategy isn’t quite unfolding as planned. And Meta brought a mixed bag to the boardroom table, too. The firm beat expectations on both revenue and profit, but it’s anticipating sales to slow down this quarter and expenses to pick up faster this year than last. Still, Tesla will probably make the twosome feel better. The EV titan’s revenue and profit both missed expectations, and this quarter’s projections are a serious downgrade compared to last. But at least the future bar’s been lowered to more achievable levels.

Why should I care?

For you personally: The price is… getting better.

Alibaba chimed in on Wednesday, too, revealing new stats for its latest AI model. The Chinese ecommerce giant touted its latest and greatest as a world leader, citing scores from various tasks that beat what Meta and DeepSeek can do. But rankings aside, with technology labs determined to be the smartest and cheapest, everyday users – like you – should stand to bag increasingly savvy tools for less and less.

The bigger picture: Rates, rates, go away.

Interest rates have kept investors on edge. At nearly 5% in the US, they’re high enough to squeeze companies’ future cash flows, threaten to slow the economy, and make it more appealing to hold cash. And despite many hoping the Federal Reserve would loosen its grip, Wednesday’s meeting offered no such relief. The central bank said interest rates still needed time to bring inflation totally under control, so it’s keeping them steady for now. But, in a sliver of good news, there was no mention of hiking rates either.

What’s going on here?

Investors went sweet on ASML on Wednesday, treating the stock to its best day since 2020 after the European semiconductor firm handed out far better-than-expected results.

What does this mean?

Orders for ASML’s “EUV” machines – the ultra-precise tools that help print the tiniest, most powerful circuits onto AI chips – hit €3 billion last quarter, pushing the firm’s total bookings to nearly double what analysts predicted. That suggests its customers – including behemoth TSMC – are still rushing to produce all-important AI chips. But that’s not to say ASML is without challenges: the broader chip market seems sluggish, China’s economy leaves much to be desired, and major clients like Samsung and Intel are anticipating production hold-ups down the line. So while investors were impressed enough to send ASML’s shares 12% higher, that only bumped the stock back to where it was last week – before DeepSeek’s App Store takeover prompted a tech selloff.

Why should I care?

For markets: ASML spies opportunity – and it doesn’t matter where from.

DeepSeek’s latest model claims to challenge America’s best, and the Chinese tech was trained at a fraction of the price. That news might’ve shaken global investors’ confidence, but ASML still seems sure of itself. The logic: if AI tools get cheaper, businesses and individuals would be more inclined to buy them – and to keep up with higher sales, chipmakers would need to head straight to the likes of ASML.

The bigger picture: Europe has magnificent qualities, too.

While the US boasts the Magnificent Seven, Europe has the GRANOLAS: GSK, Roche, ASML, Nestlé, Novartis, L’Oréal, LVMH, AstraZeneca, and SAP. And they’ve managed to keep pace with the S&P 500 over the years. Major European companies like these might not be as buzzy as their US peers, but they do tend to compensate by trading for less. And with SAP’s recent strong results and ASML’s AI-fueled sales, the region can claim innovation to boot.