Perhaps no stock has prospered more from artificial intelligence (AI) than Nvidia. The semiconductor company leading in the development of AI chips brought triple-digit revenue and earnings growth, and at one point, the stock was up 1,000% from its late 2022 low.

As more of its clients seek to leverage AI, Microsoft stock should find itself in a virtuous cycle. Not only will its free cash flow probably rise, but it will also help fund the share buybacks and, by extension, the price growth that will continue to draw more investors to Microsoft stock.

The expectations for many artificial intelligence (AI) stocks are extremely high. If an earnings report isn't absolutely perfect, maybe even better than perfect, investors could sell off shares, sending the stock price down.

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There's no question that artificial intelligence (AI) stocks have led the charge in the current bull market, but in recent months, that leadership seems to be fading. Some investors even see a potential AI bubble emerging as valuations have arguably gotten ahead of business growth.