US tech giants expect monster profit of £82bn

US tech giants are set for a “monster earnings season” as they continue to benefit from the boom in artificial intelligence.

The ‘Magnificent Seven’ – Meta, Amazon, Microsoft, Alphabet, Nvidia, Tesla and Apple – are expected to generate a total turnover of £365 billion and profits of £81.9 billion.

That’s up from £322 billion and £64 billion respectively in the same period in 2023. The quarterly profits will be a welcome boost for Silicon Valley after a bumpy few weeks.

Last week, billions of pounds were lost from Apple and Nvidia after reports emerged that President Joe Biden wants to restrict the sale of chip technology to China and Taiwan.

Microsoft was also in the spotlight after an estimated 8.5 million computers were disabled on Friday in a global IT outage.

But analysts have noted that companies like Apple, Microsoft and Nvidia will continue to reap the rewards of AI demand. Wedbush Securities’ Dan Ives said it would be a “monster earnings season” with the “AI revolution just beginning.”

The main culprit will likely be electric car maker Tesla, which has warned of excessive demand.

Although second-quarter deliveries were better than expected, Hargreaves Lansdown analyst Matt Britzman said the electric vehicle market remains “challenging” as governments ease incentives.

Earnings season kicks off this week with updates from Tesla, Alphabet and Microsoft.

Meta, Apple and Amazon report the week after, Nvidia at the end of August.

For all brands, the period covers the three months until the end of June, except for Nvidia, which covers the run-up to the end of July.