As major technology companies prepare to release their earnings, the stock market is closely watching the semiconductor sector on July 30. With Apple, Microsoft, Meta, Amazon, and Qualcomm set to announce their results, investors are eager to see if the recent downturn in semiconductor stocks can be reversed.
Market analysts are calling this day a "super earnings day." Samsung Electronics is expected to disclose its finalized results, detailed performance by business unit, and future outlook for the memory market. SK Hynix is also anticipated to provide additional guidance on AI semiconductor demand and the high-bandwidth memory (HBM) market.
In the U.S., Microsoft and Meta must demonstrate the success of their AI investments. Recently, Alphabet (Google's parent company) and Tesla faced scrutiny as their free cash flow fell short compared to their significant AI investments, leading to stock price fluctuations. Investors will be particularly focused on whether Microsoft's cloud growth (Azure) and Meta's advertising profitability can offset AI investment costs.
Amazon's performance will hinge on the demand for AI within its Amazon Web Services (AWS). Apple, with relatively smaller AI investments, is expected to report stable results, while Qualcomm has already raised concerns about a slowdown in its smartphone business and a projected decline in Apple sales.
For the domestic stock market, the continuation of AI investments by major U.S. tech firms is crucial. A significant portion of the demand for HBM, DRAM, and NAND flash from Samsung Electronics and SK Hynix is directly linked to global AI data center investments. Analysts believe that if big tech companies maintain their trend of expanding AI investments, it could positively impact the recently plummeting domestic semiconductor stocks.
However, there are several variables at play. Recent advancements in China's semiconductor technology and ongoing weakness in U.S. semiconductor stocks, combined with the Federal Reserve's monetary policy outcomes, could increase market volatility. Concerns have also been raised that if cost pressures overshadow the expansion of AI investments, semiconductor stocks may face further adjustments.
Ultimately, this earnings season is seen as a pivotal moment for the short-term direction of domestic semiconductor stocks, including Samsung Electronics and SK Hynix. If the demand for memory driven by AI investment is reaffirmed, investor sentiment may recover. However, if the results or guidance fall short of expectations, there is a possibility of another round of declines following the recent downturn.
* This article has been translated by AI.
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