Four major tech companies to announce financial results, affecting Nvidia stock – Focus on AI investment

A major US semiconductorNvidiais still about a month away from announcing its financial results, but the continued results announced this week by the company’s top high-tech customers are likely to affect the fate of Nvidia’s stock price , which is at an all-time high.

This week, Microsoft, Alphabet, Amazon.com, and Meta Platforms will report earnings. In determining trends in demand for Nvidia, attention will be focused on each company’s capital investment in artificial intelligence (AI). Compiled by BloombergdataAccording to , these four companies accounted for more than 40% of Nvidia’s sales from May to July (second quarter).

The four high-tech companies are expected to report record capital expenditures, but any disappointment could cause Nvidia’s stock price to fluctuate wildly. Nvidia’s stock price has nearly tripled this year on hopes around AI, pushing the company’s market capitalization over $2 trillion. This appears to be an important level for the stock market as a whole. Nvidia accounts for about a quarter of the 22% gain in the S&P 500 stock index this year.

“If these companies collectively say they’re increasing their capital spending even at a modest pace, that’s exactly what Nvidia needs to sustain its current momentum,” said Dave Mazza, CEO of Round Hill Investments. “If the content turns out to be unsatisfactory, stock prices could suffer,” he said.

The four companies are expected to spend a combined $56 billion in capital spending in the July-September period, according to average analyst estimates compiled by Bloomberg. Most of this is expected to go to AI-related equipment manufacturers such as Nvidia, and capital investment is expected to increase further over the next few quarters.

Investment related to AI is likely to remain strong in the future. From Dutch semiconductor equipment maker ASML Holding to major semiconductor contract manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC), AI is providing a bright spot this earnings season.

Meanwhile, investors have expressed concerns about tech giants’ spending on AI, saying they are doing little to boost sales. Therefore, the impact of AI investment on profits is also a focal point in the financial results of high-tech companies.

Nvidia CEO Huang

Photographer: Annabelle Chih/Bloomberg

According to a Bloomberg analyst survey, Nvidia’s sales for the fiscal year ending in January 2025 are expected to be $125.6 billion, more than double the previous year’s revenue. It is expected to increase 44% to $181 billion in the fiscal year ending January 2026.

Nvidia is not the only company that could benefit from the cost of AI, and it could also affect the stock prices of Broadcom, Super Micro Computer, Dell Technologies and others.

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