Technology investors distinguish between profitable and unprofitable AI companies

Financial markets are now separating AI companies into winners and losers based on one question: are they making money from AI?

Companies that can show clear AI revenue are doing well. Google's cloud business has grown because of AI services, and investors have rewarded it. Taiwan Semiconductor has reported record sales, driven by strong demand for AI chips. Companies that make chips, memory, and networking equipment have also benefited greatly.

But other companies have struggled to convince investors. Oracle faced tough questions after its December earnings report showed unclear returns from AI.