Important points
- Artificial intelligence (AI) is expected to be a key theme for big tech earnings in the coming years.
- Metaplatforms is scheduled to report earnings on Wednesday, while Google's parent company Alphabet and Microsoft are scheduled to report on Thursday.
- Analysts provided an update on how Meta is leveraging AI to power its platform's recommendation and ranking engine, as well as its recent AI assistant expansion Llama 3 and new We also expect him to mention AI chips.
- Google is expected to provide updates on initiatives such as AI monetization across enterprise services and other metrics on how the company is leveraging AI.
- Microsoft will likely provide investors with insight into its AI projects, including Copilot and cloud implications, through the OpenAI partnership.
Emerging technologies are expected to be front and center in major tech companies' upcoming earnings calls, as excitement around artificial intelligence (AI) captures investor attention. Meta Platforms (META) is scheduled to report earnings on Wednesday, while Google parent Alphabet (GOOGL) and Microsoft (MSFT) are scheduled to report results on Thursday.
Nvidia (NVDA) established itself as an early leader in the AI era, posting the largest single-day increase in market cap, but analysts believe the next wave of AI optimism will drive a wide range of tech stocks. I expect it to bring benefits.
“While the first wave of the AI revolution was led by the godfathers of AI, Jensen and Nvidia and Nadella/Redmond…we are now seeing the second, third, and third wave of this $1 trillion in spending over the next 10 years. A fourth offshoot is landing: the top of the tech sector,” Wedbush Securities analysts wrote.
Analysts noted that the company expects “first-quarter earnings to be a major positive catalyst for the tech sector,” citing Microsoft, Alphabet, and Meta as standouts, among others.
News that AI-powered recommendation and ranking engine updates from AI assistant and post-chip meta
Scheduled to report on Wednesday, Meta is expected to provide updates on its AI-powered recommendation and ranking engine, as well as new AI initiatives.
CFRA analysts wrote that they expect the company to show strong AI engagement in its upcoming earnings report. “META has many opportunities related to AI,” the analysts wrote, and how the company leverages technology for content discovery on its platform, its AI model Llama, and its AI assistant Meta AI. It emphasizes what you are doing.
Meta announced Meta AI enhancements a week before its earnings report. The AI assistant is integrated with Facebook, Instagram, and WhatsApp and runs on Llama 3, Meta's most advanced AI model.
The company also recently announced its latest custom AI chip, the Next Gen Meta Training and Inference Accelerator (MTIA). This could support efforts to compete with Microsoft, Google, and Amazon (AMZN) in the ongoing AI race.
Google's latest on AI monetization and initiatives like Gemini and custom chips
Google's parent company Alphabet is scheduled to release a report on Thursday, and analysts are keeping an eye on the latest information related to AI.
Alphabet stock recently hit an all-time high during the Google Cloud Next conference as the company made a flurry of AI-related announcements, including Gemini updates, new custom chips, Google Axion processors, and the introduction of Nvidia Blackwell to Google Cloud. Reached.
CFRA analysts said they “see increasing opportunities related to AI monetization” for the company through cloud, search, YouTube and Google's other businesses. Monetizing AI through the enterprise business segment was a key theme in major technology companies' last quarter results.
Analysts at Bank of America say that AI is a tailwind for Google, and that while “the use of AI certainly poses long-term competitive risks for Google,” in 2024 “the use of AI poses a long-term competitive risk for Google.” ) is likely to improve the monetization of AI.”
AI integration expected to increase Microsoft's cloud revenue and expand services to enterprise customers
Microsoft also plans to provide updates on the AI project and its impact on the company's finances. The tech giant established himself as an early AI leader through his partnership with ChatGPT maker OpenAI.
Analysts said they expected a boost from AI contributions to Microsoft. CFRA analysts wrote that the company expects AI's contribution and momentum to further increase, and that AI “will underpin double-digit growth and multiple expansion potential through 2025.” .
He added that Microsoft is well-positioned for AI-led growth, especially as its partnership with OpenAI “allows us to monetize AI-related revenue faster than other cloud/software providers.”
Analysts at Bank of America said, “The next catalyst for the stock price will likely be evidence that major AI product cycles, such as the M365 CoPilot, are in full swing in the coming quarters,” and the bank views Microsoft as a “front-runner.” He added that he was looking at him as a “candidate.”
Wedbush analysts wrote, “We strongly believe that Microsoft's AI-powered 'iPhone moment' will change Redmond's cloud growth trajectory in the coming years.” They added that they believe the introduction of Copilot, Microsoft's AI assistant, could increase the company's revenue by $25 billion to $30 billion by 2025.
