Market Insights

Second-quarter earnings season has begun with technology leading the stock market to new highs.

Companies like Advanced Micro Devices (AMD) and Nvidia  (NVDA) have rallied more than 15 percent in the last month as investors look for more AI growth. Most of these major growth stocks are scheduled to report quarterly results in the next two weeks, which could spur further activity in their share prices. The table below features key dates and recent news for the group. (Note: All earnings are due after the closing bell on their respective dates.):

Recent News

• Large-cap growth stocks have surged since the last reporting season. Technology, home to key names like NVDA and Microsoft (MSFT), is the top-performing sector in the last three months. Consumer discretionaries, home to Amazon.com (AMZN) and Tesla (TSLA), and communications, which includes Meta Platforms (META) and Alphabet (META), have also outperformed the broader market.
• Relief over tariffs and trade have supported the group. One major catalyst came on July 14, when the Trump Administration allowed NVDA to sell its H20 semiconductors in China. The AI chips were specially designed to comply with Biden-era export controls, but were blocked on April 15. That news helped NVDA become the first company to surpass a $4 trillion valuation.
• The biggest growth stocks, often known as the “Mag 7,” remain a top driver of profit growth. FactSet reported that analysts see earnings up 14.1 percent this quarter, quadruple the increase of other companies in the S&P 500.
• Chipmakers like AMD, NVDA and AVGO have led big tech stocks in the last three months with gains of more than 60 percent, according to TradeStation data. Apple (AAPL), which has struggled with AI and slowing Chinese sales, has fared the worst. In fact, it’s the only stock on the list above to lag the S&P 500 in the last three months.
• Tesla (TSLA) has also seen dramatic news since its last earnings report on April 22. CEO Elon Musk had a public fallout with President Trump, hammering the stock in early June. However it’s stabilized since then as attention focuses on Robotaxis, a potentially large future growth area. TSLA also reported its first month of growth in China this year after refreshing its Model Y vehicle. Could chart watchers think the stock is poised for a move after a tight period of consolidation? (See the 50-day moving average’s “Golden cross” above the 200-day MA on the chart below.)

Tesla (TSLA), daily chart, showing “Golden Cross” pattern.

• AMD has rallied in July as firms including Bernstein, Wells Fargo and Bank of America raised price targets. The analysts cited potential AI growth and opportunities to increase sales in China. AMD had mostly lagged rivals like AMD and AVGO in previous months.
• Alphabet (GOOGL) has climbed on optimism about its advertising business and AI growth initiatives, including Search. It’s received price-target increases by firms including Morgan Stanley, Stifel, Bernstein and BNP Paribas.
• Amazon.com (AMZN), Meta Platforms (META) and Microsoft (MSFT) have had fewer new developments. However each has recently been the object of positive analyst notes.

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