- ‘Magnificent Seven’ expected to post sales totalling £365bn
- Profits set to be in region of £81.9bn, up from £64bn in 2023
- Quarterly earnings a welcome boost for Silicon Valley after bumpy few weeks
America’s tech giants are set for a ‘monster earnings season’ as they continue to cash in on the artificial intelligence boom.
The ‘Magnificent Seven’ – Meta, Amazon, Microsoft, Alphabet, Nvidia, Tesla and Apple – are expected to post sales totalling £365billion and profits of £81.9billion.
That is up from respectively £322billion and £64billion during the same period of 2023. The quarterly earnings will be a welcome shot in the arm for Silicon Valley after a bumpy few weeks.
Monster earnings: The ‘Magnificent Seven’ – Meta, Amazon, Microsoft, Alphabet, Nvidia, Tesla and Apple – are expected to post sales totalling £365billion and profits of £81.9billion
Billions of pounds were wiped off Apple and Nvidia last week amid reports that President Joe Biden is seeking to curb sales of chip-making technology to China and Taiwan.
Microsoft was also in the spotlight after an estimated 8.5m computers were disabled by a global IT outage on Friday.
But analysts have noted that the likes of Apple, Microsoft and Nvidia will continue to reap the benefits of AI demand. Dan Ives, from Wedbush Securities, said it was set to be a ‘monster earnings season’ with the ‘AI revolution just starting to play out’.
The damp squib is likely to be electric car maker Tesla, which has warned over demand.
Although second-quarter delivery numbers were better than expected, Matt Britzman, analyst at Hargreaves Lansdown, said the EV market remains ‘challenging’ as governments water down incentives.
Earnings season will kick off with updates from Tesla, Alphabet and Microsoft this week.
Meta, Apple and Amazon report the following week, with Nvidia at the end of August.
The period covers the three months to the end of June for all but Nvidia, which covers the run-up to the end of July.
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