In earnings season, it’s AI good, everything else, not so much

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In earnings season its AI good everything else not so.jpeg

(Reuters) -AI -focused works in this profit season are focused so far. Those who serve actual people, less.

The uplifting of an artificial intelligence boom provides a large boost for semiconductor and software operations such as Google Parent Alphabet, while companies are struggling with airlines to restaurants and food manufacturers to move in an irregular American commercial policy that enhances costs, exceeds supply chains, and harms consumer confidence.

Along with Alphabet, SK Hynix and Infosys in India, market expectations over Thursday and expected the most brighter days to come, with both the alphabet and SK Hynix plans to increase spending. SK provides the most valuable NVIDIA company, the AI manufacturing giant that recently exceeded $ 4 trillion of market value.

On the contrary, executive officials in many consumer names were less enthusiastic, from the luxurious Belweether LVMH, and the giant food giant, to the HASBRO, Mattel, Airlines Southwest and America.

They have indicated, along with auto and giants, such as Coca-Cola, that some of the buyers of the buyer have withdrawn their spending with the continued high prices and interest rates.

The division is clear in IBM results. Big Blue sales have grown 25 percent in its last quarter to $ 7.5 billion, while its software sector is lower than expectations and the company seemed careful about the amount of its consultative sector this year.

The positive stock market has highlighted. News that the United States has concluded a trade deal with Japan and was compatible with the European Union before August 1. The S&P 500 Broad S&P achieved another record this week and Eurostoxx was just a few shy points of that mark.

“The market has become friendly with the aim of the definitions that end up up than ever for 100 years will not have a negative impact on economic growth, because we have not seen any negative impact on economic growth so far,” said Van Lu, head of the solution strategy, fixed income in Russell’s investments.

Whether companies continue to absorb this blow still should be seen. So far, companies have reported between 16 and 22 July of a joint loss of the entire year of up to $ 7.8 billion, with car sectors, space and pharmaceutical preparations that are harmed more than others by tariffs, according to the Reuters tariff.

The American averages have been moved by the so -called Seven, a group of technology giants that have benefited severely from plans to spend on artificial intelligence, and currently represents more than 30 % of the value of the S&P.

“Artificial intelligence is one of the strongest areas of growth for the economy, and the market reflects the economy,” said Adam Saharan, CEO of 50 Park Investments.

Certainly, the market reaction may be partial because a greater percentage of companies from companies cleanses a reduced tape of estimates. At the beginning of April, the market expected profit growth by 10.2 % on an annual basis, but by July, this number decreased to 5.8 %, according to LSEG data. With about 30 % of the ingredients that reach the results, the average growth rate of the mixed profit sits at 7.7 %.

The technology is moving at the maximum speed forward

Companies that focus on artificial intelligence continued to print money in the last quarter. The Nvidia Sk Hynix Supplier recorded a quarterly profit, supported by the demand for artificial intelligence chips and customers who store it before the potential American definitions.

Indian IT provider Infosys raised the annual revenue domain room to 1 % to 3 %, from flat to 3 %, identical to analysts’ expectations.

“The technology community extends at the utmost speed … and banks are in a very strong position now,” said Bill George, former head and CEO of Medrtonic Eduction at the Harvard University College. “Other companies will fight for growth.”

Undoubtedly consumer

Consumer companies were less optimistic. Nestlé, the largest food manufacturer in the world, reported that it is a softer request because it is struggling to win Thrifty shoppers for its major brands.

US Airlines southwestern US Airlines warned that Americans are traveling less, and the latest indication that American consumers remain careful about their spending. Both Mattel and HASBRO game makers said that the uncertainty about customs tariffs acts as opposite elements.

Car makers are among the companies that deal with the most difficult. The car giants resist the raising of prices, and the cost of definitions that may cost them millions or billions of dollars. Features on minerals, copper and cars have made it difficult to move in the changing tariff policies.

On Thursday, Hyundai Motor recorded a 16 % decrease in operating profits in the second quarter, saying that the American customs tariff cost 828 billion WNA ($ 606.5 million) in the second quarter, with a greater increase in the current quarter. General Motors still expects to reach between $ 4 billion to $ 5 billion to a minimum this year.

On Wednesday, the CEO of Tesla Elusk said that the cuts in the US government to support electric car makers can lead to a “few”, as his company reported the worst annual decrease in its sales for more than a decade.

($ 1 = 1,365 Won)

(Reuters reports participated in the reports of the news; additional reports by Nikil Sharma, Naomi Rovnick; written by Ann Marie Rouantry, Josephine Mason and David Javin; edited by Nick Ziminski)

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2025-07-24 05:28:00

0 4 minutes read