As Big Tech steps onto the earnings stage this week, tariff worries swirl, but the AI Revolution isn't slowing down. Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN), and Apple Inc (NASDAQ:AAPL) are all set to report and Wedbush Securities’ analyst Dan Ives says the setup is more bullish than bearish.
Week Ahead: Big Tech’s Demand Trends In Focus
“This is a major week ahead for the markets and tech world,” Ives said as Wall Street braces for updates on cloud spending, digital ads, and enterprise AI budgets. Despite tariff noise dominating headlines, the Street is “laser-focused” on Big Tech demand trends – and Ives expects “generally very strong results” across the board.
Microsoft and Amazon are riding a cloud spending surge, while Meta benefits from a digital advertising rebound. Even with the tariff overhang, Ives reports that CIOs and IT leaders have “very firm Cap-Ex intentions for 2025” in place, with AI deployments ramping across the enterprise landscape.
About 15% of IT budgets are now AI-driven — and those dollars are being fiercely defended.
Apple Could Take A 15-20% Hit
But for Apple, the tariff story looms large. While the Cupertino-based company is expected to post solid results, the real question is what happens if the China tariffs stick.
Ives warns that in a worst-case scenario, Apple's 2025–26 numbers could take a 15–20% hit, although a quicker resolution could limit the damage to just 2–5%.
Still, Wedbush remains firmly in Apple’s corner, pointing to its “1.5 billion iPhone and 2.4 billion iOS installed base and massive Services business” as critical anchors for weathering the tariff storm.
Bottom line? Big Tech's earnings could serve as a significant “confidence booster” if investors can keep their eyes on the long-term AI prize and not get swept away by tariff turbulence.
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