AI Trading Faces "Reality Check": Microsoft, Meta, Qualcomm Earnings Reports to Be Released After Market Close

BlockBeats News, July 29, Tonight the U.S. stock market will usher in a key earnings window for AI trading. Microsoft, Meta, and Qualcomm will announce their performance after the U.S. Eastern Time market close on Wednesday, coinciding with the Federal Reserve interest rate decision day and also hitting the recent low point in sentiment after the AI hardware chain plummet.

Over the past few days, storage, chip, and semiconductor equipment stocks have continued to be under pressure, with investors' concerns escalating regarding the return on AI capital expenditure, valuation overstretch, and competition in the Chinese supply chain. The market's focus has shifted from "how strong is the AI demand" to "can these investments really translate into revenue and cash flow".

Microsoft is the most important bellwether tonight. Wall Street expects Microsoft to have a revenue of around $87.6 billion this quarter, with earnings per share of about $4.24. Investors will focus on Azure's growth rate, Copilot's commercialization progress, and whether the company will release its capital expenditure guidance for the 2027 fiscal year. Previously, the market expected Microsoft's 2026 fiscal year capital expenditure to reach $145 billion, significantly higher than the previous year's $88 billion.

The pressure on Meta is more concentrated on "AI burn". The market expects Meta's second-quarter revenue to be around $60.2 billion, with earnings per share of about $7.19. The company previously provided a capital expenditure guidance of $125 billion to $145 billion for 2026. After Alphabet raised its AI capital expenditure expectations, Meta's stock price came under pressure. If Meta continues to increase its spending guidance tonight, it may once again trigger concerns in the market about free cash flow.

Qualcomm represents another line of AI chip transactions. Wall Street expects its adjusted earnings per share to be $2.24, with revenue of around $9.7 billion. Investors will focus on the company's progress in the data center AI business, the target of $5 billion in data center revenue for the 2027 fiscal year, and whether the demand in the Chinese Android market is recovering.

Market observers believe that the key to tonight's earnings report is not only whether the performance exceeds expectations but also whether the tech giants can prove that AI investment is bringing visible returns. If Microsoft and Meta provide strong clues about cloud business, ad conversion, or AI commercialization, the AI chain is expected to get a breather; if capital expenditures continue to rise, and free cash flow pressure increases, funds that have recently exited AI hardware stocks may continue to shift towards Hong Kong-listed internet leaders, dividend assets, and undervalued core stocks.