Magnificent 7 Earnings Alert: Is the Next Big AI Rally Starting Next Week?
Micron Technology, Inc. MU | 366.24 | -0.44% |
Sandisk Corporation SNDK | 701.59 | +1.28% |
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR TSM | 339.04 | -0.72% |
Roundhill Magnificent Seven ETF MAGS | 58.27 | -0.70% |
Microsoft Corporation MSFT | 373.46 | +1.11% |
The artificial intelligence boom continues to dominate market sentiment.
Since the start of the year, the memory sector has seen significant gains, with Micron Technology, Inc.(MU.US) rising nearly 40% and Sandisk Corporation(SNDK.US) soaring over 112%.
Additionally, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) delivered Q4 results that exceeded expectations. These strong performances are underpinned by explosive demand for AI capabilities. Now, all eyes turn to the "Magnificent Seven" (Roundhill Magnificent Seven ETF(MAGS.US)) earnings to confirm if the demand for AI compute remains robust.
Earnings Calendar: The "Mag 7" Rollout
Investors are bracing for a dense earnings schedule that could dictate near-term market direction:
- Wednesday, Jan 28 (After Market): Microsoft Corporation(MSFT.US), Meta Platforms(META.US), and Tesla Motors, Inc.(TSLA.US) kick off the season.
- Thursday, Jan 29 (After Market): Apple Inc.(AAPL.US) concludes the January reports.
- Wednesday, Feb 4 (After Market): Alphabet Inc. Class A(GOOGL.US) / Alphabet Inc. Class C(GOOG.US).
- Wednesday, Feb 25 (After Market): NVIDIA Corporation(NVDA.US), the bellwether for AI chips.
- Note: Amazon.com, Inc.(AMZN.US) has not yet confirmed its earnings date.
Wedbush: Geopolitical Volatility Creates Tech Buying Opportunities
Despite recent market jitters, analysts remain bullish on the structural growth of AI.
"Noise vs. Signal":
According to a recent note from Wedbush Securities, the tech giants are projected to spend approximately $550 billion in capital expenditures (CapEx) this year, fueling the next phase of the AI revolution.
While recent geopolitical tensions—specifically the rhetoric between the Trump administration and the EU—have caused a pullback in tech stocks, Wedbush views this as a "buy the dip" opportunity. The firm suggests that despite bearish narratives, the AI revolution is still in its early stages. Wedbush highlights several key picks, including NVIDIA Corporation(NVDA.US), Microsoft Corporation(MSFT.US), Palantir(PLTR.US), CrowdStrike(CRWD.US), Nebius Group N.V. Class A(NBIS.US), Apple Inc.(AAPL.US), Palo Alto Networks, Inc.(PANW.US), Alphabet Inc. Class A(GOOGL.US), and Tesla Motors, Inc.(TSLA.US).
The firm argues that current political frictions are transient and unlikely to derail the "Fourth Industrial Revolution" trend heading into 2026.
Earnings Outlook: Mag 7 Remains the Engine
Wall Street consensus estimates suggest that the divergence between Big Tech and the broader market will continue.
- Growth Projections: As of January 18, consensus estimates forecast the broader tech sector within the S&P 500 to grow earnings by +25.4% in 2025 and an impressive +31.1% in 2026. This is significantly higher than historical averages.
- Mag 7 Dominance: For 2026, the "Mag 7" are projected to see earnings growth of approximately 24%, compared to just 12.5% for the remaining 493 companies in the S&P 500. Essentially, the tech giants are expected to grow profits at nearly double the rate of the rest of the market.
JPMorgan: The AI Super-Cycle Continues
JPMorgan stated in its annual outlook that the market dynamics of 2026 are unlikely to differ significantly from 2025. The firm expects market leadership to remain concentrated among AI giants.
JPMorgan identifies the AI-driven investment super-cycle as the core of its optimistic outlook. This cycle is driving record CapEx and rapid earnings expansion, leading to "unprecedented" market concentration in high-quality growth companies. The bank defines these leaders as firms with strong profit margins, robust cash flow growth, disciplined capital returns, and low credit risk.
Focus: Related ETFs & Leveraged Instruments
Volatility is expected to increase surrounding these earnings releases. Beyond the individual stocks, traders may monitor the following Exchange Traded Funds (ETFs):
Leveraged and inverse ETFs involve significant risks and are not suitable for all investors. Past performance is not indicative of future results. Please consult with a qualified financial advisor before making investment decisions.
Which of the "Magnificent Seven" do you think will deliver the biggest earnings surprise this quarter? Share your thoughts in the comments below!