Big Tech earnings season is about to kick off next week, with Google and Intel set to report their results on July 22nd and 23rd, respectively. Investors will be closely watching the results, particularly focusing on AI spending and returns, as well as chip sales.
One key area of interest will be Microsoft and Meta, which have faced scrutiny for their heavy investments in AI data center capacity. Google and Amazon, on the other hand, have managed to avoid similar criticism in recent times. Wall Street will be eager to hear more about Microsoft’s expansion of its Copilot service and AI growth through its Azure platform. Meanwhile, Meta investors will be looking into how the company is leveraging AI to enhance ad sales and user engagement.
Google and Amazon will need to continue delivering strong results to keep Wall Street on their side while also demonstrating control over their spending. Additionally, analysts will be keeping an eye on the hyperscalers’ remaining performance obligations (RPOs) to gauge future growth prospects.
On the chip side, the focus will be on sales and forward guidance for companies like Nvidia, Intel, AMD, and memory makers. It will be crucial for these companies to show that demand is either maintaining pace or increasing. However, even strong results may not be enough to satisfy investors who have recently reacted negatively to news from Nvidia.
Apple’s upcoming earnings report will also attract attention for several reasons. While iPhone sales always take the spotlight, analysts will be keen to hear about the demographics of buyers and their motivations. There will be particular interest in whether customers are making purchases ahead of potential price hikes or holding out for Apple’s rumored foldable iPhone launch later this year.
Post-earnings discussions are likely to revolve around the impact of rising memory and storage costs on Apple’s margins and future device pricing. It will be interesting to see how Apple addresses these challenges in its outlook.
Overall, the upcoming Big Tech earnings reports are expected to provide valuable insights into the industry’s performance and future prospects. Investors will be closely monitoring the results and guidance from key players in the tech sector to gauge the overall health of the market.
