Get ready. We’re approaching the busiest week of earnings season. About 160 S&P 500 companies are scheduled to report quarterly numbers, including Microsoft and Advanced Micro Devices. Apple is also on standby. The reports come as major tech stocks face pressure from a rotation out of the big-cap trade in favor of beaten-down small-cap names. The first reports from stocks in the former group haven’t been well received. Tesla and Google parent Alphabet fell sharply last week on disappointing releases, dragging the broader market lower. Still, the overall season has been strong. About 41% of S&P 500 companies have reported earnings through Friday’s close. Of those, 78% have topped earnings expectations. Check out CNBC Pro’s breakdown of what to expect from this week’s major reports. All times are ET. Advanced Micro Devices is scheduled to report earnings after the bell Tuesday. Management call scheduled for 5 p.m. Q4: AMD said it will sell $4 billion worth of AI chips this year. Q4: Analysts surveyed by LSEG expect the chipmaker’s earnings per share to rise 17% from the year-ago period. What CNBC is watching: Investors will be looking for signs of progress in the chipmaker’s position in the AI race. In a note last week, Stifel analyst Robin Roy said, “We continue to believe AMD has established itself as a strong No. 2 vendor for GPU-based AI computing and expect continued progress as the company expands its footprint in AI technology.” What history shows: AMD has a mixed record on earnings. The company beats expectations 62% of the time, according to Bespoke Investment Group. Still, shares average 1.5% lower on earnings days. Microsoft is scheduled to report earnings after the close, followed by a call at 5:30 p.m. Q4: MSFT reported an acceleration in cloud revenue growth thanks to the company’s AI push. Q3: Analysts expect revenue growth of more than 14% year-over-year from the company, according to LSEG. What CNBC is watching: Expectations are high for Microsoft ahead of Tuesday’s report. Evercore ISI raised its price target on the stock to $500 from $485 last week, while Jefferies named the tech giant a top pick. “We expect strong Q4 results and a repeat of double-digit top- and bottom-line growth for FY25,” Evercore ISI said. “While this may not be enough to drive the stock (in a material way) in the near term, we believe our estimates have room to move higher over FY25.” What history shows: Custom data shows Microsoft beats earnings estimates 81% of the time. The stock is also averaging a 0.4% gain on earnings day. Apple is scheduled to report earnings after the market closes on Thursday. A call with leadership is also scheduled for 5 p.m. Q4: AAPL announced its largest buyback ever as iPhone sales slumped. Q4: The outlook for the tech giant is muted, with analysts expecting earnings growth of just 6% year-over-year, according to LSEG data. What CNBC is watching: Key for the tech giant will be any updates on its AI efforts. “After years of slowing upgrade rates … we believe Apple Intelligence could provide a much-needed upgrade catalyst, significantly boosting revenue and EPS growth,” Baird analyst Will Bauer wrote last week. He also raised his price target on the stock to $240 from $200. What history shows: Apple’s earnings have beaten expectations 89% of the time, according to Bespoke. However, shares have fallen on three of the last four earnings days. Amazon is scheduled to report earnings after the close. Management call scheduled for 5:30 p.m. Last quarter: AMZN said its earnings more than tripled. This quarter: Analysts surveyed by LSEG see earnings growth of more than 55% for Amazon. What CNBC is watching: Amazon shares have been under pressure recently, losing more than 5% this month amid a broader selloff in tech-related stocks. Could Thursday’s report turn the tide for the e-commerce and cloud giant? BMO analyst Brian Betz thinks so. Last week, he raised his price target on the shares to $230 from $220, noting: “We raise our Q2 2024 AWS growth estimate by 120 basis points to 19% from 17.8% as companies go on the offensive — channel scans suggest AWS growth in Q2 2024 could approach 22%+.” What history shows: Amazon shares have risen after the last four days of earnings, according to Bespoke data.
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Your guide to the busiest week of the season
