Anthropic sits in the second layer. That’s why this IPO matters more than its size suggests.

The company hit a $61.5 billion valuation in its latest round, with annualized revenue reportedly approaching $3 billion and profitability finally entering the conversation. Anthropic itself isn’t the story here, it’s the catalyst. 

The real question is whether companies building large language models can generate revenue commensurate with the hundreds of billions flowing into the infrastructure built to serve them. Investors spent two years buying the suppliers without ever testing the demand side. Anthropic’s IPO hands them the first real chance to do exactly that, and Oracle and AMD sit directly in the blast radius of whatever answer the market delivers.

Oracle Bet $138 Billion On Demand That Hasn’t Arrived Yet

Last quarter, Oracle’s Remaining Performance Obligations hit $138 billion against fiscal 2026 revenue of $57.4 billion. That’s customer commitments running more than double a full year of revenue, with enterprises reserving cloud capacity years before they’ll actually need it. Cloud Infrastructure revenue climbed 52% year-over-year. OCI consumption grew 62%. Management is guiding OCI growth above 70% for fiscal 2027, and guidance at that level only makes sense if the people setting it believe the demand curve keeps climbing rather than flattening out.

Now, Oracle Corp (NYSE: ORCL) sits one layer beneath Anthropic in this stack. The models generate the headlines; Oracle’s infrastructure processes the workloads underneath them. Every enterprise rolling out Claude, every workflow rebuilt around it, every increase in model usage eventually becomes compute, storage, and networking demand flowing straight back to Oracle. Or put another way, today’s infrastructure spend assumes tomorrow’s workloads show up on schedule. 

Every customer Anthropic adds and every dollar of revenue it generates strengthens the case that Oracle’s backlog reflects real demand instead of excessive optimism. The relationship runs both directions, if model builders stall, the infrastructure built underneath them gets questioned next.

The chart shows the market already wrestling with that tension. Shares ran toward $250 before falling back to roughly $165, now sitting below the 20-day moving average of $203, the 50-day near $190, and the 200-day around $204. The cloud numbers are among the strongest Oracle has ever posted. What’s being priced instead is whether that infrastructure finds enough demand to fill it, and Anthropic’s IPO delivers one of the clearest signals the market will get this year.

AMD Sells The Hardware That Makes The Bet Real

Oracle sells capacity. Advanced Micro Devices Inc (NASD: AMD) sells the silicon that capacity runs on, and every AI company eventually collides with the same wall regardless of how good its models are: compute.

AMD posted first-quarter revenue of $10.3 billion, up 38% year-over-year. Data Center revenue hit $5.8 billion, growing 57%. Segment operating income climbed 72% to $1.6 billion, and free cash flow reached a record $2.6 billion… numbers describing an industry consuming compute at a pace that barely existed eighteen months ago. 

Management provided another figure that helps explain the scale. 

Meta plans to deploy up to six gigawatts of AMD Instinct GPU capacity across future builds. Utilities use gigawatts to talk about powering cities and industrial corridors. AI infrastructure now speaks the same language, and that alone tells you how far past “tech trend” this buildout has already moved.

Anthropic operates inside that exact supply chain: Oracle supplies the infrastructure, AMD supplies the hardware, Anthropic consumes both, and every increase in model usage creates demand for accelerators, networking gear, and the cooling and power systems wrapped around them. AMD’s stock reflects institutional conviction that this chain holds together: shares trade near $520, above the 20-day moving average around $510, the 50-day near $423, and the 200-day around $265. That spread between current price and longer-term trend is a market betting heavily that AI demand keeps expanding. Anthropic’s IPO either validates that bet or forces a serious repricing of it.

This IPO Tests The Entire Ecosystem, Not One Company

Most IPOs like Saudi Aramco, VISA, Amazon etc, reveal something about each company going public. This one reveals something about everyone standing behind it. Oracle’s backlog assumes AI demand keeps compounding. AMD’s valuation assumes model builders keep spending aggressively. Data-center operators keep expanding capacity, utilities keep building new power infrastructure, and capital keeps flowing into every corner of this ecosystem because investors believe large language models eventually generate enough economic value to justify what’s being spent around them.

Anthropic may become the first major public report card on that belief. A strong reception confirms model builders are converting growth into durable businesses and keeps capital flowing into cloud infrastructure and chip production exactly as planned. A weaker one shifts the conversation toward margins, returns on invested capital, and a credible profitability timeline… demands that adoption metrics alone won’t satisfy anymore. In all of these, infrastructure providers keep their existing contracts regardless of which outcome plays out. What changes is how much confidence the market keeps extending to the assumption that demand grows forever.

AI creating real value is not the debate here. What we need to see now is revenue showing up, profitability following it, and returns on capital justifying the money that built this entire stack.

CrowdStrike: Investors Are Selling The Future, Not The Business

CrowdStrike (NASDAQ: CRWD) dropped sharply after reporting revenue growth of 26%, EPS growth of 51%, record operating cash flow of $384 million, record free cash flow of $279 million, and raised full-year guidance — a combination that reads like exactly what investors claim to want, which makes the reaction worth understanding rather than simply accepting at face value.

The frustration has less to do with endpoint security and more to do with what comes next. Management keeps talking about a second act built around autonomous systems and AI-driven security operations, and investors who had already priced in early confirmation of that transition sold when the quarter delivered strong current-period results without material evidence that autonomous security is generating meaningful revenue yet. 

After rallying from roughly $350 in March to nearly $780 before earnings, the stock had become one of the market’s biggest winners. Expectations were stretched. When the company delivered another strong quarter rather than a transformative one, investors took profits.

Yet the longer term picture remains constructive. Shares remain well above the 50-day moving average near $521 and the 200-day near $479, which is not where a stock trades when the money that matters has decided to leave. The market is questioning how valuable CrowdStrike’s next growth engine becomes. It is not questioning the quality of what’s already built — and that distinction is where the opportunity lives.

Cadence Design Systems: The Toll Booth Nobody Talks About

Most investors debating the AI race spend their time arguing over which chip company wins. Cadence Design Systems (NASDAQ: CDNS) gets paid before that race even begins.

Every advanced semiconductor requires sophisticated design software before it can be manufactured, tested, or deployed at scale. And as AI models grow larger and more computationally demanding, the chips required to run them grow more complex in direct proportion, making Cadence’s electronic design automation tools more critical to players like Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Broadcom Inc (NASDAQ: AVGO), Marvell Technology (NASDAQ: MRVL) and others in the ecosystem.

The stock surged from roughly $270 in April to more than $410 before pulling back toward $380. A correction after a move like that should surprise nobody. What matters is where the stock corrected to. Shares remain comfortably above the 50-day moving average near $336 and the 200-day near $325, and volume during the decline never suggested the kind of institutional distribution that precedes a genuine breakdown. The chart looks like a stock digesting a powerful breakout, not beginning a downtrend.

AI companies compete with each other. Chipmakers fight over market share. Cloud providers battle for dominance. Every single one of them still needs increasingly sophisticated chip designs to pursue any of those ambitions. The market sees a software company. I see a toll booth collecting from every lane of the AI highway simultaneously — and toll booths don’t lose relevance when traffic increases.

Arista Networks: The Infrastructure Play Everyone Keeps Overlooking

Investors love talking about GPUs. They spend far less time discussing what happens after the GPUs arrive. What happens is that data has to move, constantly, at enormous scale, between servers that need to communicate faster than the chips themselves can process. That is where Arista Networks (NYSE: ANET) sits, providing the networking infrastructure that allows massive AI clusters and data centers to function at the performance levels the workloads actually demand. As AI models grow larger and clusters scale wider, networking becomes more important rather than less, because moving data efficiently between compute nodes increasingly determines overall system performance. 

The recent selloff dragged Arista lower alongside names facing entirely different structural risks, as investors conflated AI infrastructure spending concerns with businesses that sit in fundamentally different positions within that spending chain. Shares pulled back from approximately $180 toward the $150 area, but remain above both the 50-day moving average near $153 and the 200-day near $141, with the longer-term uptrend structurally intact and the recent weakness resembling consolidation rather than conviction selling.

The market is treating Arista as another AI stock exposed to the same risks as the names driving the narrative. The business is considerably more durable than that framing suggests, because as long as data centers keep expanding, networking is not discretionary spending that gets deferred when budgets tighten. It is the infrastructure that makes everything else function.

The Setup Across All Three

CrowdStrike’s business remains strong while the market debates its second act. Cadence keeps collecting from every company building the next generation of chips regardless of who wins the competition between them. Arista sits inside one of the most critical bottlenecks in modern computing infrastructure with a position that strengthens as the workloads it supports grow more demanding.

The selloff created uncertainty. But for investors willing to look past the short-term narrative and focus on what the businesses are actually doing, it may also have created the entry that the run-up never offered.

“We presume that fundamentals and related price action tell us we’re in middle innings. In turn, both trailing and forward PEs should be expected to moderate going forward, thus increasing the burden on earnings growth and related expectation to drive index price action.”

The AI Boom Shows No Signs of Slowing Down

With the global AI market already surpassing $230 billion in 2024, analysts now see a clear path to multi-trillion-dollar expansion—and the next five years may deliver the strongest gains yet.

Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. And judging by the surge in corporate investment, the market is moving toward the high end of those projections.

Plus, we have to consider that artificial intelligence will continue to create massive demand for data centers, which will lead to further demand for NAND. After all, NAND is a vital part of the AI infrastructure for massive amounts of data storage, speed and performance. We also have to consider that demand for more data centers (which will need more NAND) are exploding.

The data tells the story

According to MIT Technology Review, there are about 3,000 data centers across the U.S. Plus, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030. Again, growing demand for data centers will mean growing demand for more NAND memory in an already tight market.

In addition, “As the demand for data processing and storage continues to surge, data centers are experiencing unprecedented growth. McKinsey’s analysis ‘suggests that demand for AI-ready data center capacity will rise at an average rate of 33 percent a year between 2023 and 2030 (reflecting a trend that is already underway.),’” according to analysts at McKinsey, as reported by BOMA International.

The “AI Bubble” Argument Is Fading

Warnings of an “AI bubble” are increasingly being dismissed by top analysts.

Goldman Sachs says, “it believes the AI story is just getting started – and the investments that seem huge today will be dwarfed by the benefits AI will deliver,” as noted by Quartz.com. 

Long term, the investment bank says that AI adoption could add $20 trillion to the U.S. economy. AI, according to Goldman Sachs, is already delivering those gains in productivity when deployed right.”

JPMorgan’s Mary Callahan Erdoes added, “AI is presenting opportunities not fully appreciated or understood yet,” as noted by CNBC. “AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in a way that companies operate.”

How Investors Can Tap Into the AI Boom

One way is to invest in heavyweights like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).

Or, if you prefer to diversify, consider ETFs such as:

One of the Leading AI-Focused ETFs

If you want to diversify at a lower cost, there are ETFs like the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ). With an expense ratio of 0.68%, the ETF invests in companies that may benefit from the continued development and use of artificial intelligence (AI). Some of its top holdings include Palantir, Oracle, Broadcom, Netflix, Nvidia, Microsoft, and Meta Platforms, to name a few of its 86 total holdings. 

A Core ETF for Automation and AI Expansion

Another top AI ETF to consider is the Global X Robotics and Artificial Intelligence ETF (NASDAQ: BOTZ). With an expense ratio of 0.68%, the ETF invests in companies that should benefit from the increased adoption of robotics and AI. Some of its 49 holdings include Nvidia, Keyence, DynaTrace, SMC Corp., Intuitive Surgical, Upstart Holdings, and C3.ai.

From machine learning and automation to generative AI tools and advanced semiconductors, the artificial intelligence market is expected to expand rapidly over the next several years, creating major opportunities for both companies and investors.

According to Grand View Research, the global AI market could expand from about $137 billion in 2022 to more than $1.8 trillion by 2030. Other studies suggest AI may add trillions of dollars to the global economy over the next decade as companies use it to improve productivity, lower costs, and increase profits.

Because of this massive potential, many investors want exposure to AI-related stocks. Investors are increasingly viewing artificial intelligence as a long-term megatrend similar to the early growth of the internet or cloud computing. That excitement has helped fuel significant gains in many AI stocks, but it has also increased volatility as valuations rise and competition intensifies across the sector. For newer investors, especially, finding a balanced way to participate in the future of AI without taking excessive risk has become an important part of building a long-term portfolio.

Companies like NVIDIA (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) have become popular choices because they help power AI systems through advanced computer chips and data center technology. However, choosing the right AI stocks can be difficult. The industry changes quickly, competition is intense, and even promising companies can experience large swings in price.

For investors who want a simpler and potentially safer way to invest in the future of AI, exchange-traded funds (ETFs) can be a smart option. AI ETFs allow investors to own a collection of companies connected to artificial intelligence instead of relying on a single stock. This diversification can reduce risk while still providing exposure to the fast-growing AI market.

Why Investors Are Looking Beyond Individual AI Stocks

Global X Artificial Intelligence & Technology ETF

One ETF many investors consider is the AIQ, also known as the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ). This fund focuses on companies that could benefit from the development and use of AI technologies across different industries. The ETF has an expense ratio of 0.68%, making it a relatively affordable way to gain broad exposure to the AI sector.

The fund includes major technology companies and AI leaders such as Palantir Technologies (NASDAQ: PLTR), Oracle (NYSE: ORCL), Broadcom (NASDAQ: AVGO), Netflix (NASDAQ: NFLX), Microsoft (NASDAQ: MSFT), and Meta Platforms (NASDAQ: META). By investing in multiple companies, the ETF spreads risk across different parts of the AI industry, including cloud computing, software, semiconductors, and digital platforms.

Global X Robotics and Artificial Intelligence ETF 

Another one of the top AI ETFs to consider for the future of AI is the Global X Robotics and Artificial Intelligence ETF (NASDAQ: BOTZ). With an expense ratio of 0.68%, the ETF invests in companies that should benefit from the increased adoption of robotics and AI. Some of its 49 holdings include NVIDIA (NASDAQ: NVDA), Keyence (OTCMKTS: KYCCF), DynaTrace (NYSE: DT), SMC Corp. (OTCMKTS: SMCAY), Intuitive Surgical (NASDAQ: ISRG), Upstart Holdings (NASDAQ: UPST), and C3.ai (NYSE: AI).

ETFs Can Help You Capture the Future of AI

Artificial intelligence is expected to remain one of the fastest-growing sectors in the global economy for years to come. As companies continue investing in machine learning, automation, robotics, and AI-powered software, investors have an opportunity to benefit from the industry’s long-term expansion. While individual AI stocks like NVIDIA and Advanced Micro Devices may continue to attract attention, AI-focused ETFs can provide a diversified approach to investing in this rapidly exploding market.

For long-term investors, AI ETFs may represent one of the most practical ways to participate in the future of AI while managing risk. Instead of depending on a single company to dominate the industry, ETFs allow investors to benefit from broader trends across semiconductors, cloud infrastructure, software, robotics, and automation. As artificial intelligence adoption expands throughout the global economy, diversified AI ETFs could continue to attract investors seeking both growth potential and a more balanced approach to one of the market’s most transformative technologies.

While the stock is taking a natural breather following such a sharp move higher, many analysts believe the rally may still be in its early stages. With AI infrastructure spending continuing to expand across the enterprise and cloud computing markets, AMD appears increasingly well-positioned to capture a larger share of the booming semiconductor market.

The company’s latest earnings report showed strong momentum in its AI accelerator and server CPU businesses, while management also pointed to rising demand tied to the emergence of agentic AI systems. Combined with aggressive analyst price targets and expanding market opportunities, AMD’s latest quarter reinforced the idea that the company could remain one of the biggest long-term winners of the AI boom.

AMD Earnings Show Strength Across AI and Data Center Segments

Let’s start with AMD earnings.

The company delivered an impressive first-quarter performance, posting earnings per share of $1.37, beating Wall Street expectations by eight cents. 

Revenue reached $10.25 billion, marking a 37.8% increase year over year and surpassing estimates by roughly $330 million. All thanks to the strong demand for AI infrastructure and data center products.

AMD’s Data Center segment once again led the way, with revenue climbing 57% to $5.78 billion. Growth was fueled by continued demand for the company’s AI accelerators, along with its Instinct and EPYC processors. Analysts had expected data center revenue closer to $5.61 billion, making the segment’s outperformance particularly notable.

Lisa Su Highlights Growing Agentic AI Demand

Fueling more upside, CEO Lisa Su highlighted growing demand for CPUs tied to the expansion of agentic AI, an emerging category of artificial intelligence systems capable of performing increasingly autonomous tasks. In fact, during the earnings call, Su said AMD is seeing a “meaningful” acceleration in server CPU demand, signaling that enterprises are investing heavily in next-generation AI computing infrastructure.

Looking ahead, AMD expects second-quarter revenue of approximately $11.2 billion, plus or minus $300 million. That forecast is ahead of analyst expectations of about $10.52 billion. At the midpoint of guidance, the company is projecting year-over-year revenue growth of roughly 46%, underscoring the strength of demand trends across its AI and data center businesses.

Wall Street Analysts See More Upside for AMD Stock

According to Goldman Sachs, AMD is positioned to benefit from multiple growth drivers, including expanding enterprise AI adoption and rising demand for high-performance computing solutions. The firm believes these trends could significantly expand AMD’s market opportunity over the next several years.

Jefferies analyst Blayne Curtis was just as bullish, noting that CEO Su’s comments regarding accelerating server CPU demand were the “clear highlight” of the quarter. He also pointed to AMD’s decision to double its estimated total addressable market for server CPUs to $120 billion by 2030. That revised estimate reflects expectations for approximately 35% annual growth, driven largely by expanding AI workloads and agentic AI adoption.

Jefferies has a Buy rating on AMD stock with a $415 price target, citing confidence that the company can continue gaining market share in both CPUs and AI accelerators.

Why AMD Could Benefit From the AI Infrastructure Boom

With strong earnings, accelerating AI demand, bullish analyst sentiment, and aggressive revenue guidance, AMD is increasingly being viewed as one of the biggest beneficiaries of the ongoing AI infrastructure boom. If the company continues to execute at its current pace, the recent rally in shares may prove to be only the beginning of a larger, long-term move higher.

As companies race to build more advanced AI systems and expand cloud computing capacity, demand for high-performance semiconductors is expected to remain elevated for years. AMD’s latest results suggest the company is becoming one of the biggest beneficiaries of that trend.

The company is also benefiting from a broader shift toward diversified AI hardware spending. While NVIDIA continues to dominate the AI accelerator market, many enterprise customers and hyperscale cloud providers are looking for alternative suppliers capable of delivering competitive performance at scale. AMD’s expanding Instinct accelerator lineup and EPYC processors position the company to capture a growing share of that demand.

If AMD continues executing at its current pace while AI adoption accelerates globally, AMD stock’s recent breakout could prove to be the beginning of a much larger long-term move higher.

As big tech earnings season heats up, each company represents a different layer of the AI ecosystem—from Palantir’s software and defense exposure to AMD’s data center chips and Arm’s architecture dominance. With all three stocks rallying sharply into their reports, the key question isn’t just whether they deliver strong results, but whether those results are strong enough to justify current valuations.

Palantir Earnings: AI and Defense Demand Drive Growth

Palantir will post earnings on Tuesday after the closing bell. In its last quarter, the company beat on earnings thanks to AI and defense demand. In fact, last quarter’s EPS of 25 cents beat by two cents. Revenue of $1.4 billion, up 69.2% year over year, beat by $60 million.

For the current quarter, the company is looking to revenue of between $1.532 billion to $1.536 billion, which is above estimates of $1.33 billion. Wall Street is looking for EPS of 28 cents on revenue of $1.54 billion.

The company continues to benefit from its role as a key software provider to U.S. defense agencies, making it a direct beneficiary of rising global defense spending. Notably, Palantir earnings have beaten both revenue and EPS estimates 100% of the time over the past two years.

Loop Capital expects another strong showing, citing continued AI momentum, positive field checks, and upbeat management commentary as reasons for a likely “beat and raise.”

AMD Earnings: AI Chip Demand Meets High Expectations

AMD earnings will be released Tuesday after the bell, placing the company squarely in the spotlight during this big tech earnings cycle. Since the start of April, shares of AMD rocketed from a low of about $200 to a high of $360.54.

That surge has been helped by upgrades from Susquehanna and higher capex spending, both of which are solid catalysts for companies like AMD. Now, heading into earnings, analysts are looking for $9.88 billion in revenue and adjusted EPS of $1.27 a share, each up about 33% year over year.

Deutsche Bank added that, “Overall, the combination of secular/cyclical revenue tailwinds and [operating margin] leverage supports rev/EPS upside potential [Deutsche Bank estimate slightly above] Street. While we applaud this fundamental upside potential, we also believe it to be largely reflected in AMD’s share price following the recent significant appreciation. Consequently, maintain Hold rating,” as also quoted by CNBC.

Arm Earnings: AI Infrastructure Tailwinds Continue

Much like AMD, ARM has been explosive. Since March, it has run from about $120 to a recent high of $211.18, where it’s still fighting to push even higher. Helping, ARM recently unveiled its new AGI CPU and announced a strategic collaboration with IBM to expand enterprise computing capabilities. In addition, analysts are looking for EPS of 58 cents a share on revenue of $1.47 billion, which would again represent continued growth for the company. 

Arm Holdings is expected to post earnings on Wednesday after the market closes. Heading into the report, analysts expect AMD to report $9.88 billion in revenue and adjusted EPS of $1.27—both representing roughly 33% year-over-year growth.

However, expectations may already be priced in. Deutsche Bank noted that while AMD’s revenue and EPS upside potential remain strong due to both secular and cyclical tailwinds, much of that optimism is already reflected in the stock’s valuation. The firm maintains a Hold rating despite acknowledging the company’s strong AI infrastructure positioning.

Wells Fargo also raised its price target on ARM to $220 from $175 with an Overweight rating. The firm cited ARM’s strong positioning in AI-driven data center markets, where demand for power-efficient chips continues to rocket higher.

Big Tech Earnings Outlook: Can AI Stocks Justify the Rally?

As this round of big tech earnings unfolds, Palantir, AMD, and Arm earnings will offer critical insight into the durability of the AI trade. Each company is executing well within its niche, but all three face the same challenge: meeting or exceeding very high expectations.

For investors, AI stocks’ earnings are no longer just about growth—they’re about sustaining momentum at scale. Even strong results may not be enough if guidance disappoints or valuations appear stretched after recent rallies.

That makes this week especially important. These big tech earnings reports won’t just confirm past performance—they’ll help determine whether the next leg of the AI rally is supported by fundamentals or already priced in. Investors should be prepared for volatility because in this environment, expectations matter just as much as execution.

That sets the stage for a potentially strong earnings season for industry leaders like Taiwan Semiconductor (NYSE: TSM), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN). Each company enters its report with improving momentum and clear ties to AI spending.

With expectations rising and demand signals strengthening, these tech giants may not only meet estimates but exceed them, pushing their stocks to new highs.

AI Demand Fuels Taiwan Semiconductor’s Breakout Quarter

Since the start of the year, Taiwan Semiconductor has been one of the most explosive tech stocks on the market, running from about $311 to a recent high of $370. All thanks to substantial demand for artificial intelligence (AI) chips and high-performance computing (HPC) from tech heavyweights like NVIDIA (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Advanced Micro Devices (NASDAQ: AMD).

When Taiwan Semiconductor releases first-quarter earnings on April 16, we expect it to rally significantly, just as it did after its February earnings. After posting a strong quarter, TSM rallied from about $329 to $389 over a few weeks. This time around, the Street is looking for substantial earnings following the company’s preliminary report of record-breaking quarterly revenue, which is already well above market expectations.

In fact, for the first quarter, the company already reported preliminary revenue of $35.71 billion, marking a strong year-over-year increase of 35% and landing at the high end of its previously guided range of $34.6 billion to $35.8 billion. Most notably, March alone delivered a 45% year-over-year increase in revenue, signaling accelerating demand.

All of which highlights the strength of AI-driven demand. 

For the full year, Taiwan Semiconductor remains highly optimistic as it expects the foundry 2.0 industry to grow 14% year over year. The company’s revenue could increase by 30% for the year to $158 billion, which aligns with consensus estimates. 

Microsoft’s Azure Growth Could Reignite Big Tech Momentum

Microsoft Corporation will post earnings on April 29 after the markets close. Just weeks ago, Microsoft traded at just 22x forward P/E, a level last seen in 2016. It traded at $368 and was one of the hardest-hit tech stocks on the market. Today, as the company nears earnings, it’s up to $384 and climbing. When the company posts earnings later this month, investors will be paying close attention to 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 remains intact, and the risk is already priced in. The firm also says Microsoft is the best compounder across AI products because it earns across AI compute, platforms, and applications. 

Amazon’s AI Expansion Is Quietly Becoming a Profit Engine

Amazon is expected to post first-quarter earnings on April 30. While its stock is relatively flat year to date, it is regaining momentum as earnings approach. Fueling a good deal of recent upside is a combination of strong AI-driven growth in its cloud business and a strong shareholder letter from CEO Andy Jassy.

With regard to the company’s AI business, the CEO noted, “I’ve followed the public debate on whether this technology is over-hyped, whether we’re in ‘a bubble,’ and if the margins and ROIC will be appealing. My strong conviction, at least for Amazon, is that the answers are no, no, and yes,” as quoted in a shareholder letter.

He added, “Three years after AWS launched commercially, it had a $58 million revenue run rate. Three years into this AI wave, AWS’s AI revenue run rate is over $15 billion in Q1 2026 (nearly 260 times larger than AWS at that same point)—and ascending rapidly.”

Now that we are nearing Amazon’s earnings later this month, we expect to see even more positive news, especially as AI demand shows no signs of cooling.

Earnings Season Could Push These Tech Stocks Higher

In short, Taiwan Semiconductor, Microsoft, and Amazon are all entering their upcoming earnings reports with strong momentum driven largely by sustained AI demand. Taiwan Semiconductor has record-breaking revenue and accelerating growth.

Microsoft’s expanding Azure platform and diversified AI ecosystem are sure to continue to impress to the upside. And Amazon’s rapidly scaling AI business within AWS highlights its ability to capitalize on one of the most transformative trends in technology.

As these companies report in the coming weeks, each could see higher highs.

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.

Let’s reiterate that the report was good. AMD posted record revenue of $10.3 billion, which was up 34% year-over-year (YoY). For the full year, the company also reported record revenue of $34.6 billion. For both the current quarter and the full year, Advanced Micro Devices cited broad-based demand across its Data Center and Client and Gaming segments. 

Adjusted earnings per share (EPS) of $1.53 smashed estimates for EPS of $1.32 and were 42% higher YoY. Adding to the bullish report, the company saw an expansion in its gross margin and operating income. That signals long-term pricing power with the company forecasting a compound annual growth rate (CAGR) of over 35% between 2028 and 2030. This isn’t hype. It’s a company that’s executing amid expectations for a tight supply chain for GPUs and CPUs.  

Once again, you’d have to look hard to find a blemish in the report.  

However, the market and investors are forward-looking. And AMD’s guidance was less than expected. The revenue forecast of $9.8 billion for Q1 2026 would be an impressive 32% YoY gain. However, it would be down about 5% from the current quarter. 

Investors were also hoping for more information on the company’s MI450 GPUs and its Helios’ rack-scale solutions. Advanced Micro Devices didn’t have much to say about those products, which won’t have an impact until the second half of the year.  

That was enough to take shares lower. 

Data Center Demand is Real 

Punctuating the strength of the company’s data center business, full-year revenue came in at $16.6 billion, which was up 32% YoY. The growth was fueled by the company’s EPYC CPUs powering cloud hyperscalers and its Instinct MI300X GPUs that are capturing AI accelerator share.  

In the fourth quarter alone, data center revenue came in at $5.4 billion, up 39% YoY, with China being a significant catalyst, delivering approximately $390 million of that number.  

Looking forward, chief executive officer (CEO) Lisa Su remarked that the data center business could grow to tens of billions annually. Given AMD’s history of issuing conservative guidance and the recent results from NVIDIA (NASDAQ: NVDA), that’s probably a low estimate. 

But even at that level, it would signal the potential for triple-digit revenue growth. That’s well beyond the company’s forecasts for high-double-digit growth.  

Su is the latest CEO to issue guidance that should throw cold water on the hot take that data center spending is a bubble that’s about to burst. That isn’t stopping investors from buying into the fear trade that’s befalling many stocks related to the AI trade.  

The Bearish Rebuttal 

You could make an argument that AMD stock was up over 60% in the 12 months heading into the earnings report. Therefore, the argument would go; there was already significant growth priced into the stock.  

However, that doesn’t account for the last several quarters when the company has been delivering revenue that is higher both sequentially and year-over-year. You could just as easily make the case that AMD earned its premium price, and this report confirmed why.  

AMD Stock is a Gift for Growth-Hungry Investors 

With AMD stock pulling below $200, the buying case becomes very simple. The consensus price target is $289.43, and that comes from 48 analysts covering the stock. That gives investors over 40% upside at the consensus mark. Notably, that price target is about 10% above the all-time high AMD stock reached twice in the last six months.  

That percentage goes even higher when you factor in some of the price targets coming in after earnings. Analysts liked what they heard and believe in the long-term outlook for the stock.  

This is an important observation for investors. You should always pay more attention to where long-term analyst sentiment is more than short-term trading moves. In a world dominated by high-speed trading platforms, traders key in a number. If they don’t get it, a round of selling is triggered. 

It’s painful if you’re holding AMD stock. But when the dust settles, this is going to be a buying opportunity.  

The Market is Repricing AMD Stock, Use That to Your Advantage 

With shares below $200 versus a $289 consensus target (40%+ upside), this dip ignores AMD’s fortress balance sheet ($10.6B cash), client/gaming surge (Ryzen share gains), and AI pipeline.

High-speed trading triggered the selloff, but fundamentals scream opportunity. Growth investors: Accumulate now—history shows post-earnings pullbacks in leaders like AMD yield outsized returns when execution persists. 

In that report, Amazon beat across the board and boosted its forecast for spending based on growing demand for artificial intelligence.

• Amazon Web Services saw 20% year-over-year growth to $33 billion.
• Revenue in its digital advertising business saw revenues jump 24% to $17.7 billion.
• Total Amazon sales were up 13% to $180.17 billion, which beat estimates of $177.8 billion.
• EPS was $1.85, crushing estimates of $1.57. 

But that was then. What do analysts believe Amazon managed in its most recent quarter?

• Amazon is expected to post EPS of $1.97 a share for the fourth quarter, or about 6% growth year-over-year.
• For full fiscal year 2025, it’s expected to post EPS of $7.17, up about 30% year-over-year from $5.53 for FY 2024.
• For the full fiscal year 2026, Wall Street is looking for EPS of between $7.87 and $7.91, or 10% year-over-year growth.

Adding to the optimistic outlook, Wedbush reiterated an outperform rating with a price target of $340 per share, expecting a big year for AWS. They named Amazon as their top e-commerce pick for the year. They also forecast fourth-quarter income of $25.2 billion, with a margin of 11.8, as noted by TipRanks.com. In the third quarter, Amazon’s operating income was $17.4 billion. 

But Amazon isn’t the only market heavyweight posting earnings this week. Here are two other reports to watch closely.

Advanced Micro Devices

Advanced Micro Devices (NASDAQ: AMD) will post fourth-quarter earnings after the bell on Tuesday. Analysts expect the company to post EPS of 1.32 a share, which would be 21.1% year-over-year growth. Revenues are expected to come in around $9.67 billion, up 26.2% year over year. In its last earnings report, the company beat estimates with EPS of $1.20 on sales of $9.2 billion.

Strong growth in AMD’s data center AI segment is expected to continue to contribute to its bottom line, with solid server performance from its MI350 GPUs. AMD announced partnerships with OpenAI and Oracle recently. In addition, CEO Lisa Su stated that the partnerships represent “a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.” 

The company has a solid track record of beating EPS and revenue estimates, with the preceding four quarters surpassing analysts’ estimates. 

Alphabet

Alphabet Inc. (NASDAQ: GOOGL) will post fourth-quarter and full-year 2025 earnings on Wednesday after market close.

Analysts anticipate EPS of about $2.58 to $2.59, or 20% to 20.5% year-over-year growth. For the full fiscal year 2025, Wall Street analysts expect Alphabet’s diluted EPS to grow by 31.6% annually to $10.58, followed by a 4.4% improvement to $11.04 in fiscal 2026. 

Also, after a strong 2025, 2026 could be just as strong – especially after Apple entered into a multi-year partnership with Alphabet to use its Gemini models and cloud technology for Apple’s AI products, including Siri, with rollouts expected this year.

Analysts at Raymond James just upgraded GOOGL stock to a strong buy with a price target of $400 per share. As noted by TheStreet.com, “Raymond James is making the argument that Google’s AI stack is ‘shifting to high gear,’ possibly driving “material upward revisions” to medium-term estimates.”

Amazon, AMD, and Alphabet are AI Bellwethers

Amazon, AMD, and Alphabet are all poised to deliver results that reinforce the strength of AI-driven growth. Amazon’s accelerating AWS momentum, expanding margins, and improving earnings outlook put it squarely in the spotlight, while AMD’s data center traction and Alphabet’s rapidly scaling AI ecosystem add further upside potential across the tech sector. 

With analysts growing more optimistic and expectations elevated, strong reports could act as a powerful catalyst for tech stocks, making this another critical week for investors.