Tech stocks face a pivotal week as Big Tech earnings and AI spending come into focus
Key Takeaways
- •Microsoft, Meta Platforms, Apple, Amazon, SK Hynix, and Qualcomm are among the major companies set to report earnings this week.
- •Investors are closely watching capital expenditure guidance after Alphabet’s spending outlook unsettled markets and raised free cash flow concerns.
- •Meta said it will partner with BlackRock on a $14 billion plan to build a 1-gigawatt data center in Texas.
- •Nvidia shares dropped about 5% after reports that it is in talks with OpenAI about financing a data center project in Ohio.
- •The earnings reports will help assess whether demand for computing capacity, cloud services, and advanced chips is still driving large-scale AI infrastructure spending.
Tech stocks face a pivotal week as Big Tech earnings and AI spending come into focus
GOOG +2.34%
META -0.22%
NVDA -4.99%
BLK +0.61%
MSFT +1.94%
Tech stocks are set for another major test this week as earnings season brings results from some of the industry’s largest companies.
Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) are among the marquee reports on the calendar, while key chipmakers including SK Hynix (SKHY) and Qualcomm (QCOM) are also scheduled to report.
Investors are expected to focus closely on capital expenditure plans after Alphabet’s (GOOG, GOOGL) spending guidance unsettled markets and raised concerns about free cash flow during the ongoing AI investment boom. That makes the coming reports a read on not just revenue and profit, but also how aggressively large tech companies are still committing capital to data centers, chips, and other AI infrastructure that has become central to the sector’s valuation debate.
On Tuesday, Meta said it is entering into a $14 billion agreement with BlackRock to build a 1-gigawatt data center in Texas. Meta is scheduled to report on Wednesday.
Meanwhile, Nvidia (NVDA) is reportedly in talks with OpenAI (OPAI.PVT) about providing $250 billion in financing for a data center project in Ohio, renewing questions about circular financing in the AI industry. Nvidia shares fell roughly 5% on the day. With several of the biggest AI spenders and suppliers reporting in quick succession, investors will be watching for any update on whether demand for computing capacity, cloud services, and advanced chips is still translating into the level of spending that has driven the trade so far.