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Big Tech Poised for Strong Quarterly Results Amid AI Spending Boom, Wedbush Says
11:20:04 AM ET, 10/08/2025 - MT Newswires
11:20 AM EDT, 10/08/2025 (MT Newswires) -- Technology giants such as Microsoft (MSFT), Alphabet (GOOG, GOOGL), and Amazon (AMZN) riding the wave of the artificial intelligence boom are poised to report robust quarterly results, Wedbush Securities said Wednesday.

In a client note, the brokerage said its checks indicate a "very strong" earnings season for the broader tech space, particularly for the three cloud stalwarts amid rising AI enterprise demand.

Wedbush analysts, including Daniel Ives, said that Wall Street is underestimating the scale of AI spending as some investors question stock valuations and the investment trajectory.

"Our bullish view is that investors are still not fully appreciating the tidal wave of growth on the horizon from the $3 trillion of spending over the next 3 years coming from enterprise and government spending around AI technology and use cases," Ives wrote. "We have barely scratched the surface of this 4th industrial revolution now playing out around the world," led by the Big Tech stalwarts such as Nvidia (NVDA), Microsoft, Palantir Technologies (PLTR), Meta Platforms (META), Alphabet and Amazon.

Microsoft, Meta and Amazon are expected to release their upcoming financial results toward the end of October, followed by Palantir, Google parent Alphabet and Nvidia.

Wedbush projects tech stocks to rise further by at least 7% for the rest of the year.

"We also believe the latest investments by OpenAI into Nvidia and (Advanced Micro Devices) speak to the capacity buildout and demand drivers happening on the enterprise front," Ives said.

Last month, chipmaking giant Nvidia and the Microsoft-backed parent of generative AI chatbot ChatGPT signed a letter of intent to deploy at least 10 gigawatts of Nvidia systems for OpenAI's next-generation AI infrastructure.

On Monday, chipmaker AMD agreed to deploy 6 GW of its graphics processing units to power OpenAI's AI infrastructure.