The 5 tech giants that will determine the fate of the markets this week — and it all hinges on AI
This week is shaping up to be one of the most pivotal in the earnings season in the U.S.: nearly 180 companies from the S&P 500 are set to reveal their numbers, including five members of the Magnificent 7. On Wednesday, Microsoft, Meta, Amazon, and Alphabet take the stage; on Thursday, it's Apple’s turn. But beyond quarterly earnings, what the market is really watching for is the message on investments in artificial intelligence, margin expansion, cloud demand, and growth outlook.
The backdrop is one of spectacular recent euphoria: both the S&P 500 and the Nasdaq have hit new all-time highs, racking up four consecutive weeks of gains, while the semiconductor index has surged by 47% in just 18 sessions — a reflection of the optimism surrounding the global race for AI infrastructure. However, this rally has pushed valuations higher, raising investor expectations accordingly. The results from the big techs will therefore serve as a real test: if these companies maintain high investments with tangible returns, they will bolster the structural thesis of AI; otherwise, the market could correct some of its enthusiasm.
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