Has Wall Street Entered the "Show Me" Phase of AI?

Wall Street's sentiment toward AI stocks is shifting from rewarding spending announcements to demanding tangible results. Microsoft and Amazon received positive reactions for demonstrating strong cloud growth and positive free cash flow despite massive AI investments. Palantir also gained on strong commercial AI software demand. However, Alphabet, Meta, and Tesla faced investor skepticism due to concerns about negative free cash flow, unclear ROI timelines, and ambitious but unproven AI initiatives.