Tech Earnings Loom After Strong 2023

Tech sector stocks gained more than 50% last year, fueled by AI and signs of improvement in the cloud and chip markets. Upcoming Q4 results could give investors clues into 2024.

When info tech stocks stumbled to start the year, it disrupted a Wall Street party that roared through 2023 as investors embraced rapid advances in artificial intelligence and improved metrics in cloud computing.

Nvidia (NVDA) shares joined the $1 trillion market capitalization club with gains of more than 200% last year amid AI enthusiasm. Advanced Micro Devices (AMD) skyrocketed, too, as investors sent the PHLX Semiconductor Index (SOX) up more than 60% in 2023. Microsoft (MSFT) also found traction from AI, and Apple (AAPL), the largest U.S. stock, rallied despite revenue challenges.

This year is when the AI rubber arguably hits the road as investors seek evidence that tech companies can apply the technology in ways that lift revenue. Fourth-quarter earnings season could provide clues starting next week when IBM (IBM) and two major chip firms are expected to report.

iPhones and cloud computing take center stage later in the earnings season with expected earnings from Alphabet (GOOGL) and AAPL on January 30 and February 1, respectively, according to Earnings Whispers. Amazon (AMZN) and NVDA are expected to report in February, as well.