US investors prepare for a turbulent week as tech giants reveal earnings

US investors are preparing for a turbulent week as some of the technology industry’s biggest players gear up to release their quarterly financial results.

The earnings season started on a positive note, with both Tesla and Netflix exceeding analyst expectations last week.

However, the focus now shifts to Alphabet (Google’s parent company), Amazon, Apple, and Meta, which are all scheduled to report their numbers. Experts believe that artificial intelligence (AI) will be a major theme in Silicon Valley, with Alphabet and Microsoft being the key players in this space.

Quarterly results: All eyes will be on Google-owner Alphabet, Amazon, Apple, and Meta which are all set to report their numbers

AI gained significant popularity earlier this year with the release of OpenAI’s ChatGPT, supported by Microsoft. Investors will be interested in Mark Zuckerberg’s plans for AI within Meta-owned companies like Facebook.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, stated, “‘Further steer on plans for AI work will be the holy grail. Meta has been vague on the details, and Meta investors will want to see concrete progress and planning in the near future.”

Analysts anticipate that AI, expected to become a trillion-dollar market by 2028, will be a key driver in the broader tech sector in the second half of 2023.

For Amazon and Apple, analysts will be closely monitoring the performance of their retail divisions amidst the ongoing cost of living crisis.

Investors are also hopeful for growth from Amazon’s cloud computing arm, AWS. These earnings come after months of job cuts across the industry.