Tech stocks today: Semiconductor company earnings in focus amid AI boom, Musk vs. Altman fight continues

Yahoo Finance’s Jake Conley reports connected what to ticker this week from semiconductor names:

This week, investors volition get a look astatine different portion of the pie: the semiconductors underpinning the AI boom. Lattice Semiconductor Corporation volition footwear things disconnected with archetypal 4th results connected Monday, followed by reports from Advanced Micro Devices connected Tuesday and Arm Holdings connected Wednesday.

If the Magnificent Seven companies supply the buyer’s perspective, semiconductor designs are a bellwether for the proviso broadside of the AI build-out. The assemblage has been a agleam spot for the equity marketplace adjacent arsenic different pockets person taken a deed from the effects of the warfare successful Iran.

The PHLX Semiconductor Index (^SOX) surged much than 40% and had its champion period since February 2000 successful April — extending the record-setting semiconductor tally that has been driving the AI trade. AMD is up 70% implicit the past period heading into earnings. Lattice is up 25%, and Arm is up 40%

The sector’s lofty show has enactment it astatine hazard for a imaginable pullback, noted Steve Sosnick, main strategist astatine Interactive Brokers. But that said, helium added, “If cardinal components of SOX tin proceed to present affirmative surprises … it becomes overmuch much hard to stake against.”

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Meta (META) is acquiring AI robot institution Assured Robot Intelligence, arsenic the institution looks to physique retired its ain humanoid robotics capabilities.

"We acquired Assured Robot Intelligence, a institution astatine the frontier of robotic quality designed to alteration robots to understand, predict, and accommodate to quality behaviors successful analyzable and dynamic environments,” a Meta spokesperson said successful a statement.

Assured Robot Intelligence cofounders Lerrel Pinto and Xiaolong Wang volition pb the effort, the spokesperson said, and supply “expertise successful however we tin plan our models and frontier capabilities for robot power and self-learning to whole-body humanoid control.”

Humanoid robots, which were erstwhile the worldly of science-fiction movies, are becoming progressively blase acknowledgment to improving AI capabilities.

A wide scope of companies, including Boston Dynamics, Tesla (TSLA), Agility Robotics (AGRO.PVT), and Figure AI, are moving to make the exertion with the hopes that they’ll beryllium archetypal to marketplace with a robot that tin execute a assortment of actions connected par with oregon amended than humans.

In general, the archetypal thought is to spot robots successful environments that are excessively unsafe for humans oregon person them enactment successful positions that necessitate repetitive movements that tin origin injuries implicit time.

Apple (AAPL) banal climbed astir 5% connected Friday, aft the institution posted better-than-anticipated results connected Thursday connected the backmost of beardown iPhone gross and continued maturation retired of China.

For the 2nd quarter, Apple reported net per stock (EPS) of $2.01 connected gross of $111.2 billion. Analysts were anticipating EPS of $1.96 and gross of $109.66 billion, according to Bloomberg expert statement estimates.

Apple’s iPhone gross grew 20% for the 2nd consecutive 4th to $56.99 billion, portion China gross ticked successful astatine $20.49 billion, up of expectations of $18.9 billion.

That, coupled with beardown Services sales, seemed to springiness investors much assurance successful Apple’s outlook. And with the company’s WWDC lawsuit scheduled for June 8, we should get much penetration into Apple’s AI strategy aft a bid of fits and starts that person been an overhang for the smartphone maker.

Throw the expected foldable iPhone and planned CEO modulation from Tim Cook to John Ternus successful September into the mix, and things are surely looking absorbing for Apple astatine the moment.

Silicon Valley’s favourite AI instrumentality is making it harder to get Macs, and Apple (AAPL) CEO Tim Cook says it could instrumentality the institution immoderate clip to drawback up with demand.

AI developers and enthusiasts person been snatching up Mac minis and Mac Studios to tally the AI cause level OpenClaw, acknowledgment to their comparative affordability and easiness of use. That’s made it hard for immoderate customers to get their hands connected the compact, screenless desktop systems.

“The Mac Mini and the Mac Studio, some of these are astonishing platforms for AI and agentic tools, and the lawsuit designation of that is happening faster than what we had predicted. And truthful we saw higher-than-expected demand,” Cook said during the company’s Q2 net call.

“We think, looking forward, that the Mac mini and the Mac Studio whitethorn instrumentality respective months to scope supply-demand balance,” helium added.

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Nvidia (NVDA) banal tumbled much than 4% connected Thursday arsenic different chipmakers gained.

Investors whitethorn beryllium weighing rising contention for Nvidia, which has truthful acold been the ascendant play successful the AI infrastructure space.

In its net telephone connected Wednesday, Amazon (AMZN) noted its in-house chips concern is booming, portion Alphabet’s Google (GOOG, GOOGL) said it plans to merchantability its customized Tensor Processing Units (TPUs) to prime customers who volition instal the chips successful their ain information centers.

Amazon’s and Google’s in-house chips are antithetic than the ones Nvidia offers, and the AI spot dense has mostly dismissed immoderate fears that different tech giants volition erode its pb successful the space, saying that its chips connection greater flexibility for AI developers.

Amazon and Alphabet are besides large buyers of Nvidia’s AI infrastructure hardware.

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Apple (AAPL) reported its 2nd 4th net connected Thursday, topping analysts’ estimates connected the apical and bottommost lines connected beardown iPhone sales.

Apple banal roseate astir 1% connected the news.

For the quarter, Apple saw net per stock (EPS) of $2.01 connected gross of $111.2 billion. Analysts were anticipating EPS of $1.96 and gross of $109.66 billion, according to Bloomberg expert statement estimates.

That’s up from the EPS of $1.65 and $95.35 cardinal the institution saw successful the aforesaid 4th past year.

Apple’s iPhone gross came successful astatine $56.99 billion, conscionable up of Wall Street’s projections. This marks the 2nd consecutive 4th of much than 20% gross maturation successful the segment.

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Elon Musk took the basal for a 2nd time successful his proceedings with OpenAI connected Thursday, facing cross-examination from the AI firm’s lawyer.

A Reuters study from wrong the courtroom painted a representation of a tense bid of exchanges betwixt Musk and OpenAI’s counsel, with a mates of cardinal headlines emerging.

Most notably, Musk saying nether oath that he, “didn't work the good print, conscionable the headline” regarding OpenAI’s determination from a non-profit to a for-profit entity overseen by a non-profit.

Understandable successful that OpenAI’s firm operation remains unsocial and, successful immoderate ways, inactive inscrutable. But bringing a suit is simply a large measurement to instrumentality successful bid to summation an knowing of the situation.

The 2nd cardinal header to look was Musk saying that his AI startup, xAI, has utilized OpenAI to bid its ain models, saying that it is, “standard signifier to usage different AIs to validate your AI."

Read the afloat communicative from Reuters here.

Yahoo Finance's Jared Blikre reports:

Amazon (AMZN) has an reply for investors questioning its monolithic spending connected artificial intelligence: Demand for its unreality concern is surging.

The company’s unreality backlog — aboriginal concern Amazon has already contracted but has not yet turned into gross — jumped to $364 cardinal successful the archetypal quarter, CEO Andy Jassy said connected the company’s net call.

And that fig doesn’t see Amazon’s precocious announced Anthropic (ANTH.PVT) woody for much than $100 billion.

The summation is simply a crisp leap from the $244 cardinal successful unreality backlog Amazon disclosed astatine the extremity of the 4th quarter. Back then, investors were inactive digesting the company’s astir $200 cardinal superior spending program for 2026.

The backlog is the cardinal counterpoint to the cash-flow unit that showed up successful Amazon’s archetypal 4th results. The institution is spending heavy connected information centers, chips, servers, and different infrastructure earlier it tin cod the gross from that capacity.

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The large AI flippening is accelerated approaching: Anthropic looks acceptable to overtake OpenAI’s valuation.

According to a Bloomberg study precocious Wednesday, Anthropic is readying different fundraising circular that would worth the institution astatine $900 billion, making it the much invaluable of the 2 large AI labs that person defined the existent roar for the archetypal time.

OpenAI past raised superior astatine a valuation of $852 billion.

As Bloomberg noted, Anthropic has raised caller wealth from Alphabet (GOOG, GOOGL) and Amazon (AMZN) successful caller weeks, some astatine a valuation of $350 billion.

Both companies, which committed $10 cardinal and $5 cardinal successful caller money, respectively, retained an enactment to summation their concern successful the startup later.

Google genitor Alphabet (GOOG, GOOGL) connected Wednesday said that it plans to merchantability its customized Tensor Processing Units (TPUs) to prime customers who volition instal the chips successful their ain information centers.

The determination is simply a alteration from Google’s anterior strategy, which saw it rent retired TPU capableness to customers from its ain information centers — and is yet different onslaught astatine AI spot king Nvidia (NVDA).

The announcement, during the company’s Q1 net call, comes a week aft Alphabet announced 2 caller TPUs: its TPU 8t for AI grooming and TPU 8i for inferencing.

“As TPU request grows from AI labs, superior markets firms, and high-performance computing applications, we’ll statesman to present TPUs to a prime radical of customers successful their ain information centers successful a hardware configuration to grow our addressable marketplace opportunity,” Alphabet CEO Sundar Pichai said during the company’s archetypal 4th net call.

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Meta banal fell 6% arsenic the net telephone was underway. As Yahoo Finance’s Myles Udland points out, 2 cardinal risks Meta touched connected successful its quarterly study could beryllium putting unit connected shares.

Myles writes:

The archetypal is costs — namely, costs related to its artificial quality investments. Meta raised the scope for its expected superior expenditures this twelvemonth to $125 billion-$145 billion, up $10 cardinal from January connected some the precocious and debased ends, citing “expectations for higher constituent pricing this twelvemonth and, to a lesser extent, further information halfway costs to enactment aboriginal twelvemonth capacity.”

Meta’s accrued concern is, successful part, astir the accidental presented by AI. But it is besides a effect of higher prices crossed a fig of inputs — chips, earthy materials, land, permitting — that spell into this build-out. Inflation isn’t lone a household phenomenon.

The 2nd situation is regulatory. In its net statement, the institution wrote, “We proceed to show progressive ineligible and regulatory matters, including headwinds successful the EU and the U.S. that could importantly interaction our concern and fiscal results.

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YouTube continues to play an important portion successful Alphabet’s ecosystem.

“In the surviving room, US viewers are watching implicit 200 cardinal hours of YouTube contented daily,” Google CEO Sundar Pichai said connected the net call. He touted that YouTube Premium saw its largest quarterly summation successful non-trial subscribers.

YouTube advertizing gross roseate 11% to $9.88 cardinal successful the archetypal quarter, underscoring the platform's beardown momentum. Google said its wide fig of paid subscriptions has present reached 350 million, with YouTube and Google One being the cardinal drivers.

But YouTube and different societal media platforms are facing increasing ineligible risks arsenic usage balloons. In March, Google (GOOG, GOOGL) mislaid successful a landmark societal media addiction suit that recovered that YouTube’s plan caused harm successful young users.

Four of the “Magnificent Seven” megacap tech stocks conscionable reported net — and each of them bushed nett expectations. Yet, lone Alphabet banal seemed to summation a favorable absorption from investors aft hours. Here’s a recap:

Alphabet (GOOG, GOOGL): Google reported spot successful its unreality concern and Gemini artificial quality models, which lifted archetypal 4th net $5.11 per share, a bushed compared to estimates of $2.62. Google banal jumped 6% aft hours.

Microsoft (MSFT): Microsoft bushed analysts’ expectations connected the apical and bottommost lines, but the banal fell 2% successful extended trading. Ahead of earnings, Microsoft said it had reworked its narration with OpenAI (OPAI.PVT).

Meta (META): The societal media elephantine erstwhile again raised its plans for capex spending. Meta plans to walk betwixt $125 billion-$145 cardinal connected AI ventures, a staggering magnitude that helps explicate wherefore the banal fell 6% contempt a Q1 net beat.

Amazon (AMZN): Amazon’s unreality portion reported its fastest maturation successful 15 quarters and its Q1 profits bushed estimates. The banal fell astir 4%, however, arsenic AI spending weighed connected escaped currency flow.

Meta Platforms (META) is acceptable to study archetypal 4th net aft the marketplace adjacent connected Wednesday, with capitalist absorption apt to halfway connected the company’s monolithic AI investments and caller unit cuts aimed astatine reshaping the enactment for the AI age.

The institution is expected to study adjusted net per stock (EPS) of $8.15 connected gross of $55.5 billion, according to Bloomberg estimates. In January, the institution guided to archetypal 4th gross of $53.5 billion-$56.5 billion.

Meta banal is up astir 2% this year, against a 6% summation for the Nasdaq Composite (^IXIC).

In the archetypal 4th past year, Meta reported EPS of $6.43 connected gross of $42.3 billion. In that report, the institution said it expected full expenses successful 2025 to scope $113 cardinal to $118 billion, with superior expenditures forecast astatine $64 cardinal to $72 billion.

By the extremity of the year, Meta’s realized expenses deed $117.7 billion, and its superior expenditures tallied $72.2 billion. In January, the institution said it expected 2026 expenses to travel successful betwixt $162 cardinal and $169 cardinal and its superior expenditures to scope $115 cardinal and $135 billion.

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Google genitor Alphabet (GOOG, GOOGL) volition study its archetypal 4th results connected Wednesday, with the institution acceptable to connection cardinal updates connected its Gemini model, Google Cloud revenue, and its concern plans arsenic investors spot the institution arsenic 1 of the large AI winners this year.

Alphabet banal has climbed astir 30% implicit the past six months, beating retired Amazon (AMZN), up 13%, and Microsoft (MSFT), which is disconnected astir 20%.

Much of that is acknowledgment to the occurrence of Google’s unreality level and Gemini artificial quality models. That’s helped the company’s unreality gross accelerate implicit the past fewer quarters, topping $17.66 cardinal successful Q4, and it doesn’t look similar it’s slowing down anytime soon.

Google Cloud gross is projected to beryllium $18.4 billion. That would magnitude to a 50% year-over-year increase.

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Microsoft (MSFT) volition study its 3rd 4th results aft the doorbell connected Wednesday arsenic Wall Street looks for signs that the institution tin support up with AI request and dependable its presumption successful the artificial quality race.

Microsoft’s banal has plunged successful caller months connected concerns astir its Azure and AI growth. In its past quarter, Microsoft reported 38% maturation successful its Azure concern but said it would person reached 40% if not for capableness constraints.

This concern, arsenic good arsenic questions astir Copilot adoption, risks to Microsoft’s endeavor bundle business, and its narration with OpenAI, has hung implicit the concern successful caller months, with its banal down implicit 20% successful the past six months and serving arsenic a laggard among its “Magnificent Seven” peers.

For the quarter, Microsoft is expected to study net per stock of $4.04 connected gross of $81.46 billion, according to Bloomberg expert statement estimates, up from the aforesaid play past twelvemonth erstwhile it saw EPS of $3.46 and gross of $70.06 billion.

The company’s Productivity and Business Processes conception is expected to make $34.48 billion, portion the Intelligent Cloud concern is expected to spot $34.31 billion.

Azure gross is expected to summation 38.24%.

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Amazon (AMZN) volition study its archetypal 4th net alongside rivals Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) connected Wednesday, with investors looking for much signs that the company’s monolithic artificial quality spending is paying off.

All totaled, the AI hyperscalers are expected to walk a whopping $650 cardinal successful superior expenditures successful 2026, and Amazon volition relationship for $200 cardinal of that.

Despite that, Wall Street has been mostly affirmative connected Amazon, with the banal of the unreality and e-commerce elephantine up 13% twelvemonth to date. That’s amended than Google’s 12% increase, and good up of Microsoft, which is down 12%.

Amazon, however, is besides dealing with accrued shipping costs owed to rising substance prices, which could interaction e-commerce gross successful the quarter.

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Tesla (TSLA) and SpaceX (SPAX.PVT) CEO Elon Musk took the basal connected Monday to connection grounds successful a high-profile ineligible conflict with OpenAI and Sam Altman.

Musk is accusing Altman, OpenAI president Greg Brockman, and others of misleading him astir the company’s plans to modulation from a nonprofit to a for-profit business. Other notable names, including Microsoft CEO Satya Nadella and Altman himself are expected to instrumentality the basal arsenic well.

In his archetypal remarks, Musk spoke successful his diagnostic benignant of apocalyptic pronouncements.

“If we marque it OK to loot a charity, the full instauration of charitable giving successful America volition beryllium destroyed. That’s my concern,” Musk said, according to Reuters.

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Yahoo Finance's Brian Sozzi reports:

Investors should brace for eye-popping superior expenditures numbers from large unreality work providers similar Amazon (AMZN) and Microsoft (MSFT) erstwhile they study net this week.

In a caller note, JPMorgan strategist Samik Chatterjee offered immoderate caller estimates connected accelerating AI infrastructure spending.

"Data halfway capex among the apical 4 US unreality work providers continues to inclination higher for 2026 pursuing our past update, ... driving different upward revision to the outlook — from +52% to +63% maturation successful 2026 — with robust double-digit maturation increases evident crossed each US hyperscalers," Chatterjee wrote.

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Yahoo Finance's Ines Ferré reports:

Oracle (ORCL), AMD (AMD), CoreWeave (CRWV), and different AI-driven names sank connected Tuesday. Investors sold disconnected shares of companies tied to OpenAI (OPAI.PVT) aft The Wall Street Journal reported the AI developer precocious missed income and idiosyncratic targets, renewing concerns astir overspending successful the sector.

Citing radical acquainted with the matter, the study said the startup fell abbreviated of its interior extremity of 1 cardinal play progressive users for its chatbot ChatGPT by year-end. It besides reportedly missed its yearly gross people for the product. Meanwhile, Google’s (GOOG) competing AI bot, Gemini, grew implicit the past year, eating into OpenAI’s marketplace share.

Read much here.