This week’s earnings from Apple Inc (NASDAQ:AAPL, XETRA:APC), Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT), and Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) are expected to reinforce one core theme: AI is no longer just a future growth story but a driver of real revenue, profits, and valuation for Big Tech.
Analysts at Wedbush take the view that investors are still underestimating how quickly these companies are monetizing AI, whether through cloud demand (Microsoft, Amazon, Google), digital advertising (Meta), or upcoming product strategy shifts (Apple).
The firm sees this earnings week as a key test of whether strong AI spending and massive capex are translating into sustainable growth, and believes the answer will likely be yes.
“We have barely scratched the surface of this 4th Industrial Revolution now playing out around the world,” Wedbush said, pointing to technology giants such as Nvidia, Apple, Microsoft, Meta, Alphabet and Amazon as the key beneficiaries.
Apple is set to report fiscal second-quarter 2026 results for the March quarter on Thursday after the close, with analysts expecting a closely watched conference call as CEO Tim Cook prepares to step down and leadership transitions to John Ternus.
Wedbush said investors will be “laser focused” on Cook’s comments regarding his departure and any signals around Apple’s long-awaited AI strategy, which is expected to be outlined more fully at its Worldwide Developers Conference in June. Still, the brokerage expects strong quarterly results and believes the Street is underestimating Apple’s growth prospects for 2026.
Amazon will report first-quarter 2026 results on Wednesday after the bell, with Wedbush forecasting another strong beat driven by accelerating growth at Amazon Web Services amid supply-constrained AI demand.
The firm said AWS is benefiting from strong demand for its Trainium AI chips, including sold-out Trainium3 and Trainium4 capacity, alongside a $244 billion AWS backlog that doubled year-over-year.
Wedbush also highlighted Amazon’s advertising business, which it said is compounding at more than 20%, and its planned $200 billion in capital expenditure backed by signed customer commitments.
Alphabet, also reporting Wednesday, is expected to post strong first-quarter results as Google Cloud, AI-powered Search and YouTube continue to drive growth.
Wedbush believes the Street remains too conservative on Alphabet’s prospects, citing its Gemini 3 AI platform, custom TPU chips and cloud business, which it estimates is running at more than $70 billion annually.
Microsoft’s fiscal third-quarter 2026 results, due Wednesday after the close, are expected to show continued strength in Azure and enterprise AI deployments.
Wedbush said fiscal 2026 marks an inflection point for Microsoft as more chief information officers accelerate adoption of AI tools across enterprises. The brokerage said investors continue to underestimate Azure’s growth potential and called Microsoft one of its favorite large-cap technology names.
Meta Platforms will also report Wednesday, with Wedbush expecting another earnings beat as AI-driven advertising monetization continues to boost profitability.
The firm said Meta remains one of the clearest examples of AI translating directly into revenue gains, with AI investments improving ad targeting and performance across its platforms. It pointed to strong digital ad demand from e-commerce, consumer packaged goods and financial services, alongside continued growth in Reels advertising and the early monetization of Threads.
With all five companies reporting within days of each other, investors are expected to closely scrutinize results for signs that AI spending is translating into sustained revenue growth and whether the sector’s heavy capital investment remains justified.