Will the tech sector resume its bull run next week?

pekss
04-27

So far, the big techs have posted a mixed bag of earnings results. Although Meta Platforms' earnings have exceeded market expectations, its disappointing business outlook and accelerated spending on artificial intelligence worry investors, sending its share price plunging as high as 16% before settling at 10% fall (ouch!) at market close. Likewise, Google's parent Alphabet and Microsoft have surpassed analysts' forecasts in their earnings with the former even announcing its first ever dividend and intent to sustain the quarterly payouts. The duo rallied after their earnings releases and brough cheers to the broad market as well.

The continual outsized capital expenditure in building and enhancing AI capabilities by the big techs are good news for $NVIDIA Corp(NVDA)$  , $Advanced Micro Devices(AMD)$  and the semiconductor industry $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$  supplying the AI chips, that are poised to drive the next phase of growth for the semiconductor market amidst prevailing AI-rush as the world chase after the advanced semiconductor chips to power their AI engines.

$Amazon.com(AMZN)$   and $Apple(AAPL)$ are next in line to report their latest earnings next week. With positive earnings posted by Alphabet and Microsoft in their cloud businesses, hopes are running high that Amazon, which has the largest market share of the global cloud business, will send the NASDAQ into another round of rally, as AI helps to strengthen its cloud offering and boost its market dominance.

Even though Apple is encountering rising competition from the likes of Huawei in China, the slowdown has been largely priced in given its stock price weakness and trailing behind its peers. An upbeat outlook either from growth recovery with forthcoming new launches or rollout of AI initiatives should help to bolster its stock. While Apple has been trailing behind its peers in AI, the company has lately been making AI-related acquisitions and announcements may be in the pipeline that will bring cheers to its shareholders.

@MillionaireTiger @VideoLounge @CaptainTiger @TigerStars @TigerWire @TigerEvents 

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