AI revolution’s latest phase the focus as big tech earnings loom - analysts
Published: 13:19 29 Oct 2024 EDT
How the artificial intelligence (AI) revolution is playing out will be under scrutiny as a string of mega-cap big tech firms report this week, Wedbush analysts have said.
“Investors need to see the monetization of AI spreading to the rest of the tech landscape,” Wedbush noted ahead of this week’s updates from Microsoft Corp, Alphabet Inc, Amazon.com Inc, Meta Platforms Inc, and Apple Inc.
“The next few weeks will be the linchpin to confirmation that the AI ‘use case phase’ has now begun within the enterprise world,” analysts added.
Google owner Alphabet is set to kick off the big-name reports on Tuesday, before Microsoft and Meta on Wednesday and then Amazon and Apple later in the week.
Collective earnings are expected to be strong, according to Wedbush, and represent a "key positive catalyst" to drive shares higher into the year-end.
Tech stocks are then seen climbing a further 20% over the course of 2025, as the overall AI infrastructure market is expected to grow by 10 times through to 2027.
“The supply chain is seeing unparalleled demand for AI chips led by Nvidia and ultimately leading to this tidal wave of enterprise spending as AI use cases explode across the enterprise,” Wedbush said.
“Commentary from big tech stalwarts around capital expenditure will be front and center as this is jet fuel in the tank for the AI Revolution.”
