Big tech stocks of AI-driven companies are once again expected to deliver the bulk of earnings growth. Continued investment in artificial intelligence, cloud infrastructure, and digital services supports strong revenue growth and margin performance in this sector.
That opinion is shared by analysts who expect big tech earnings growth to outpace the S&P 500 by a wide margin. In fact, according to Barclays, companies like Apple, Amazon, Google, Meta, Microsoft and Nvidia are expected to grow earnings by 25%, well above the 8% expected for the other companies that make up the S&P 500 index. Analysts also expect big tech’s profit margins to expand by about 29% year over year, from 27%.
All of this means there are likely to be many opportunities for investors this earnings season. But here are three of the top tech stocks to watch.
NVIDIA: AI Infrastructure Spending Continues to Drive Explosive Growth
NVIDIA (NASDAQ: NVDA) is expected to post earnings on May 20 and deliver another solid quarter.
In Q4, Nvidia posted revenue of $68.1 billion, up 73% year over year. Full-year sales came in at $215.9 billion, up 65% year-over-year. And according to CEO Jensen Huang, Blackwell remains a key revenue catalyst, while the upcoming Vera Rubin platform is expected to grab the baton.
“Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace Blackwell with NV Link is the king of inference today — delivering an order-of-magnitude lower cost per token — and Vera Rubin will extend that leadership even further,” he noted.
We also have to consider that Nvidia will continue to benefit from accelerating AI infrastructure spending. In 2025, some of the biggest tech firms spent about $415 billion on AI infrastructure, which benefited Nvidia. For 2026, that’s expected to balloon to $630 billion. Moving forward, according to Nvidia, spending could reach $3 trillion.
As we near first quarter earnings, analysts are looking for revenue to range from $70 billion to $78 billion, or about 60% year over year growth. EPS is expected to nearly double. And is data center segment is expected to drive a good deal of growth, supported by heavy spending from hyperscale customers like Microsoft, Amazon, and Alphabet.
Beyond the quarterly results, guidance may be a substantial catalyst for the stock. Investors are looking for reassurance that AI spending remains durable into the second half of the year.
Microsoft: A Discounted AI Leader with Cloud Strength
Microsoft (NASDAQ: MSFT) will post earnings on April 29 after the markets close. At $368, Microsoft is a bargain. It’s been one of the hardest-hit names in tech, down roughly 22% year to date. The stock now trades at about 22x forward P/E — a level not seen since 2016. And for the first time since 2015, Microsoft is trading at a discount to the broader S&P 500.
At the center of Microsoft’s growth story is its cloud platform, Microsoft Azure. As more businesses shift their operations to the cloud, Azure has become one of the leading platforms powering that transition. Investors will be paying close attention to Azure for evidence that heavier AI spending is resulting in stronger revenue growth.
Analysts remain bullish. For example, Goldman Sachs now has a buy rating on the tech giant with a $600 price target. According to the firm, Microsoft’s growth story is still intact, and the risk is priced in. The firm also says Microsoft is the best compounder across AI products because it earns across AI compute, platforms, and applications.
AMD: Data Center Momentum Meets High Expectations
Another of the most-watched tech stocks will be Advanced Micro Devices (NASDAQ: AMD), which reports earnings on May 5 after the market closes.
Driven by its massive ascent into the AI accelerator market and strong data center performance, AMD rocketed from a low of about $90 in 2025 to a recent high of $235 a share.
Many on the Street see the data-center segment — including EPYC server processors and Instinct accelerators — as the key driver of both top-line revenue and margin expansion. As for revenue, the bar is set high at $9.8 billion, representing 32% year-over-year growth.
Guidance will be essential.
In fact, one of the biggest catalysts will be what AMD says about its outlook for the rest of 2026. After last quarter’s results, the stock dropped because the company’s forward-looking guidance was viewed as too cautious, despite beating on the top and bottom lines.
Guidance Will Be the Key Catalyst for Tech Stocks
In the end, as earnings season kicks off, these tech stocks—Nvidia, Microsoft, and AMD—are once again in the spotlight. Each is riding the wave of AI adoption, cloud expansion, and data center growth, setting the stage for potentially strong quarters. While past performance and market enthusiasm are promising, investors will be watching closely for guidance and signs that the AI-driven growth story is sustainable.
Post a Comment
0Comments