AI trade takes center stage as Big Tech earnings season kicks off

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AI trade takes center stage as Big Tech earnings season.jpeg

The technology profit season begins seriously on Wednesday, when Google Parent Alphabet (Googl, Googl) reports on its results after the bell. Two letters of Wall Street will dominate the conversation: Artificial Intelligence

From the constant spending on Capex to questions about whether these huge cash expenses are leading new revenue flows, it seems that artificial intelligence will be all investors and analysts talking about it. But major technology companies also face a variety of additional challenges in this quarter, starting from the Google monopoly experience to Microsoft (MSFT) with Openai (OPAI.PVT) to AIPL problems from Apple.

Although Ai Darling Nvidia (NVDA) will not reach its profits until August 27, leaving the most expected disclosure of this season more than a month away, there will be a lot of news and ads that must be tracked in. You will definitely make crowded profit cycle.

Big Tech has helped in investments in artificial intelligence data centers to distribute the massive growth of NVIDIA over the past few years, but Wall Street is looking to know the amount of the fruits of this spending.

During the last Amazon profit call, CEO Andy Jassi said that the company “has a millions of dollars annual return, and continues to grow triple number rates on an annual basis, and is still in its very early days.”

Moreover, Jassi said before the last generation of artificial intelligence, Amazon believed that AWS has an opportunity to be a $ 100 billion work, and now the company believes it can grow more than that. But Amazon will need to show how you plan exactly to get there to keep investors happy when it reports on July 31.

Google, which today’s reports, and Microsoft, which reports July 30, will have to prove that artificial intelligence plans are paying profits. Google has added its Gemini model to its work space productivity program and through its search products, including an artificial intelligence overview and artificial intelligence mode.

Read more: Live coverage of corporate profits

During the company’s profit call in the first quarter, the first vice president and business chief Philip Shandler said that the general searches in artificial intelligence indicate income with the same standard search inquiries, which leaves an area for improvement. The company said that the products of artificial intelligence and the Google Cloud Platform have helped increase 28 % increase in the cloud sector revenues.

But there are still questions about how to achieve criticism successfully by displaying artificial intelligence mode and pushing the challenges from Openai, anthropic (anth.pvt), and confusion (Peii.PVT).

Microsoft has benefited greatly from its early investment in Catching Creator Openai. The company attributed 16 percentage points to grow in other cloud services revenues to its offers to artificial intelligence offers.

They are not all sunlight and rainbows for Microsoft and Openai. Companies contradict how to move forward with Openai with their plan to convert them into a general interest company and what this means for Microsoft in the new organization.

Then there is Meta (Meta), which she already sees positive signs of her investment of artificial intelligence, including the long user participation and advertising.

“We are testing a new ADS recommendation model for rollers, which has already increased the transfer rates by 5 %,” CEO Mark Zuckerberg said during the company’s recent profit call. “We see 30 % of advertisers use creative tools for Amnesty International in the last quarter as well.”

The company does not give up spending. Last week, Zuckerberg said that Meta will spend hundreds of billions of dollars on databases, including one that will be great like part of Manhattan Island of the authority of what the executive indicates as “personal experts.” What this means is exactly to see. We hope Zuckerberg will add clarity when the company reports on its results on July 30.

Apple’s profits will focus on iPhone sales, as they always do, but investors will also search for an insightful look at Tim Cook CEO plans to expand his company’s artificial intelligence capabilities. To date, Apple, which also reports on July 31, has launched the Apple Intelligence platform through its various offers of devices, but it has not been able to persuade Wall Street because of the delay in Siri -backed by artificial intelligence.

According to Mark Gorkman of Bloomberg, the company is considering using artificial intelligence models for an external destination to quickly clarify Siri with the latest functions of artificial intelligence, but there is no word from Apple on the potential step.

Meanwhile, Google and Samsung have released Apple’s competitors with more advanced possibilities than Goeni Ai from Google, making more pressure on the iPhone maker.

Apple AI’s problems are the fact that Apple loses the talent of Amnesty International for its competitors. According to Georman, Ruoming Pang, Apple’s Ai Models, left for Meta. Two other Apple Ai, Mark Lee and Tom Gunter follow shortly.

Although Apple is unlikely to announce any major Amnesty International plans during its profit call, it will be interesting to know if Cook provides deeper visions on how customers use Apple Intelligence and general satisfaction.

CEO of Nvidia Jensen Huang at an event in Paris on June 11 (Sarah Mesison/Baraka via AP) · Associated Press

Nvidia is the main event for the profit season

NVIDIA will close the Big Tech’s profits when it reports after the closing of the bell on August 27. It is difficult to overestimate the extent of large NVIDIA profits ads. The company exceeded the maximum market sign of $ 4 trillion in July and does not seem to slow down any time soon.

NVIDIA continues to play the explosion at center data consteruption, where companies like Xai regularly promote the number of NVIDIA chips that they acquire to build their super computers. With the company expanding sovereign artificial intelligence, with plans to sell thousands of artificial intelligence chips to Saudi Arabia, it stare at a broader opportunity on the market.

It also does not hurt that the Trump administration will highlight the sale of H20 chips to Chinese companies after he pre -excluded them. This would help compensate 4.5 billion dollars that the company removed in the first quarter due to the ban on the first sales of the White House and 8 billion dollars that hit it in the second quarter.

Everything should be for an interesting end for the profit season, and it begins today.