Reviewed by Gotrade Internal Analyst
Gotrade News - Big Tech earnings season kicks off this week, and the spotlight is firmly on AI infrastructure spending. The numbers released will be a crucial signal for the sustainability of the global tech stock rally.
Investors are now scrutinizing whether big tech companies are still aggressive in pouring money into AI development. This serves as a vital indicator before Nvidia releases its own report next month.
Key Takeaways:
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Big Tech capex is the main benchmark for global AI chip demand.
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Microsoft and Meta earnings this week will test investor faith in the AI trend.
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Nvidia's stock movement depends heavily on spending signals from its four biggest customers.
The week opens with Microsoft, which will outline Azure demand on Wednesday (Jan 28). The market’s focus is locked on the balance between revenue growth and ballooning infrastructure costs.
On the same day, Meta is scheduled to release its financial performance regarding ad revenue and tech ambitions. Investors are waiting for proof that Zuckerberg’s massive spending spree can generate real returns for the company.
According to a Quartz report, these combined earnings represent a direct "stress test" for the AI supply chain. The market is now trying to read the direction of capital expenditure (capex) policies from the industry's key players.
Signals for the Supply Chain
Next week, it’s Amazon and Google’s turn to provide updates from the cloud computing sector. Both companies hold a unique position as they develop their own chips while still buying from external parties.
Quartz notes that this capex narrative creates a domino effect for semiconductor valuations. Signals of slowing or accelerating investment will immediately impact the market's perception of Nvidia.
Wedbush analysts state that Microsoft is expected to continue accelerating AI capex throughout fiscal year 2026. This sentiment offers optimism that tech infrastructure building is far from over.
On the flip side, TD Cowen warns of potential capacity constraints that might hold back near-term growth. This difference in analyst views shows just how sensitive the market is to every word executives say.
The Next Deciding Factor
Wall Street needs certainty regarding the price and scale of the infrastructure expansion currently underway. Forward guidance from these four tech giants will serve as the public scoreboard.
If the language leans towards tight efficiency, the market might react with more caution. Conversely, a strong commitment to spending will be seen as a green light for the chip sector rally to continue.
Nvidia will only report its performance on February 25, closing out the Magnificent 7 reports. However, its stock movement will likely already be influenced by the tone set by its major clients right now.
You need to pay attention to whether the AI investment narrative shifts to mere "cost discipline" or remains expansive. The answer to that question will determine the stock market trend for the coming weeks.
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Reference:
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Quartz, Big Tech earnings are quietly setting the stage for Nvidia. Accessed on January 28, 2026
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