Tech earnings preview: Investors want to see returns on AI spending boom

• AI CapEx is expected to be stronger than consensus forecasts, potentially growing by 50% year-over-year by 2026 for the 'Mag 5' tech companies.
• Cloud growth is projected to accelerate for Amazon, Microsoft, and Google, driven by AI and continued cloud transitions.
• Nvidia faces increasing competition from Google's TPUs and Amazon's chip offerings, while Broadcom is seen as a beneficiary in the chip space.
• Meta's ad revenue is expected to benefit from increased ad prices and upcoming political advertising, potentially leading to better-than-expected guidance.

The analyst discusses expectations for Big Tech earnings, focusing on AI capital expenditure and cloud growth. He anticipates stronger-than-forecast AI CapEx, with a demand for quicker returns on investment. Cloud growth is expected to accelerate across major players, with specific insights into chip makers and Meta's advertising revenue.