Key period for the "Seven Giants" in the US stock market: aggressive AI spending triggers profit concerns, can you take advantage of the opportunity to buy low?

Notice that Microsoft Corporation (MSFT.US) has become the weakest performer among the "Big Seven Tech" this year, with a cumulative decline of about 13.6%; following closely behind is Tesla, Inc. (TSLA.US), with a drop of approximately 12.7%. In contrast, NVIDIA Corporation (NVDA.US), Amazon.com, Inc. (AMZN.US), and Alphabet Inc. Class C's parent company Alphabet (GOOGL.US) have achieved steady growth. The Standard Pool Corporation 500 Index not only broke through historic highs with support from the "Big Seven," but also achieved an unprecedented rebound from the wartime lows in March - the index fell 9% from its January high, but then rose 12% from its low point at the end of March. Tech Contrarians, head of the Seeking Alpha investment group, said, "We expect this earning season to be a mix of joy and sorrow. Like the first quarter, investors remain picky. While we expect investors to quickly take profits once they see any slip-ups in earnings after a significant rise in stock prices, we also expect to see a lot of bottom fishing behavior." According to FactSet data, the S&P 500 Index is expected to have a year-over-year mixed earnings growth rate of 13.2% this quarter. As the technology sector is the main driver of profits and holds a significant weight in the S&P 500 Index, the "Big Seven" remains the focus of this earnings season. It is predicted that the total AI spending of Microsoft Corporation, Alphabet, Amazon.com, Inc., and Meta this year will exceed $650 billion. Earnings release schedule: - After market close on April 22: Tesla, Inc. - After market close on April 29: Microsoft Corporation, Alphabet, Amazon.com, Inc., and Meta. - After market close on April 30: Apple Inc. - After market close on May 20: NVIDIA Corporation. Market expectations for the performance of the "Big Seven": - Tesla, Inc.: Expected fourth-quarter earnings per share (EPS) of $0.36, revenue of $223.5 billion. - Microsoft Corporation: Expected third quarter EPS of $4.07, revenue of $813.9 billion. - Meta: Expected first quarter EPS of $6.74, revenue of $555.6 billion. - Apple Inc.: Expected GAAP EPS of $1.95 for the second quarter, revenue of $1.0959 trillion. - Alphabet: Expected EPS of $2.63, revenue of $1.0699 trillion. - Amazon.com, Inc.: Expected EPS of $1.65, revenue of $1.7717 trillion. - NVIDIA Corporation: Expected EPS of $1.77, revenue of $787.9 billion. Market viewpoints: - Tesla, Inc.: Investors face the dilemma of the electric car pioneer currently facing tough competition from SpaceX, as the rocket company prepares for an IPO. The "dual focus" of Musk on the two companies when they were smaller and less competitive may be starting to have a negative impact. Although the electric car business has had a lasting moat, the stock price has been overly dependent on the story of Siasun Robot & Automation business ahead of the first quarter earnings later this week. - Microsoft Corporation: Morgan Stanley's Keith Weiss has a "hold" rating on Microsoft Corporation with a target price of $650. He believes that Azure's growth rate reaching around 39% will be seen as a clear positive. However, another analyst gave a "sell" rating due to overvaluation, citing a 30% downside risk in the transition process to an AI infrastructure model: "Microsoft Corporation's aggressive capital expenditure (expected to reach 33% of revenue by 2026) risks putting the company into a cycle of high reinvestment and declining profit margins." - Meta Platforms: Some analysts believe that for those who bought in March, Meta should be held; a buying opportunity would be if the first-quarter advertising data softens and the stock price retraces the 560-580 dollar range. The stock price surged by 7% on April 8 as the company launched the first product of the "Meta Super Intelligence Lab" led by Alexandr Wang, called Muse Spark. Another analyst added, "Meta needs to prove the rationale of its AI investments, and the performance of Llama 4 was disappointing." - Apple Inc.: Management changes are shifting the company's strategic focus to the next stage. John Ternus will become CEO on September 1, 2026, while Tim Cook will move to the role of executive chairman. The market will also focus on guidance for the third quarter of fiscal year 2026 to understand how Apple Inc. is dealing with the rise in memory costs. The core question that Ternus needs to answer is: Is Apple Inc. truly an AI platform, a hardware innovator, or a cash composite growth machine based on distribution and ecosystem control? - Alphabet: With the drive from core business and AI business, Alphabet has achieved steady growth. However, huge capital expenditures and holdings in SpaceX and Anthropic bring both upside potential and concentration risks. Analysts point out, "Alphabet had an amazing performance last quarter, but attention should also be paid to its direction... Although there are concerns about the scale of capital expenditure, the company has clearly thought carefully about the timing and direction of investments." - Amazon.com, Inc.: Oakoff Investments says that Amazon.com, Inc. is actively transitioning to becoming a major driver of the AI and space infrastructure economy, with many bullish catalysts yet to be fully priced in by the market. The first-quarter earnings are expected to alleviate investors' concerns about the return on invested capital (ROIC) from past decisions. In addition, Amazon.com, Inc. is deepening its ties with Anthropic (additional $5 billion investment and $100 billion AWS infrastructure commitment), while investors are also monitoring the impact of the recent drone attacks in the Middle East. - NVIDIA Corporation: KeyBanc recently identified NVIDIA Corporation as a top concept stock. Analyst John Vinh said that the semiconductor cycle remains solid, and the true cyclical revival has not yet begun. Analyst Dmytro Lebid believes that NVIDIA Corporation's vertical integration, software lock-in effect, and risk exposure in the government/Siasun Robot & Automation field have driven its strong and diversified growth, making it resilient in the macroeconomic cycle.