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Source: Global Times

[Global Times special correspondent in the United States Liu Yiran, Global Times special correspondent Chen Xin] Bloomberg reported on the 21st that after the Nasdaq 100 index experienced its worst week in three months, the risks faced by US technology giants have increased.

According to the US Investor's Business Daily, the stocks of technology giants such as Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla have all achieved significant increases in 2023. This year, the Nasdaq 100 index has risen by 16%. However, the index has recently fallen by 4%, the largest drop since April this year. Last week, US technology stocks adjusted significantly, with Nvidia falling 8.8% and Amazon falling 5.8%. Large technology stocks such as Apple, Microsoft and Google have all fallen to varying degrees. Some analysts believe that the recent adjustment of technology stocks is affected by the US restrictions on chip trade and Microsoft's "blue screen" incident.

Microsoft officially announced on the 20th that according to its assessment, the "Microsoft Blue Screen" incident affected 8.5 million Windows devices worldwide, and it will take some time for all of them to return to normal. (Oriental IC)

Bloomberg News said that Apple, Microsoft, Nvidia, Alphabet and Amazon are facing a severe contrast with their brilliant earnings period in the past year. The profits of these five companies in the second quarter are expected to increase by 29% year-on-year, but the growth rate has dropped significantly compared with the past three quarters.

The overall judgment on Wall Street is that the results are expected to show that these companies are still thriving, but not to the level of last year.

Bloomberg said traders are plowing this year's earnings into penny stocks as Wall Street expects profit growth at tech giants to slow. All of this is heightening attention to the coming week, when major tech companies will begin reporting quarterly earnings.

Alphabet and Tesla will report earnings on the 23rd. Investors will focus on details about the progress of Tesla's self-driving car program in its earnings conference call after Tesla postponed a launch event originally scheduled for next month. Apple, Microsoft, Amazon and Meta will release earnings in the following week. These companies have benefited from the optimism brought by artificial intelligence, and investors want assurances that the technology will drive profit and revenue growth.

Samir Samana, senior global market strategist at Wells Fargo Investment Institute, said there are many reasons to believe that technology stocks will become "less friendly" in the coming year. Samana said that if these companies cannot generate substantial profits and revenue from artificial intelligence, then stock prices will return to the level of a year ago. David Kostin and other Goldman Sachs strategists wrote in a report on the 19th that unless large technology companies can convince analysts to raise their sales expectations for the second half of this year and 2025, the "huge" reversal of large technology companies will continue.

AFP said on the 21st that in the next two weeks, the quarterly results of large technology giants will give the outside world a glimpse into the financing feasibility of artificial intelligence and whether the huge investment required for artificial intelligence is sustainable in the long term.