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AI powers the market to its highest ever high.
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But this revenue season will be a key moment when massive technology shows that massive AI spending is paying off.
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Before the technology revenues begin this month, there are three big questions about AI for investors.
Large tech companies will let investors know if all the hype is still worth it.
Amidst tariff turmoil and market uncertainty, technology trade continues to bring the S&P 500 high. With Mega-Cap Tech's earnings scheduled to kick off later this month, investors are looking for clues to see if AI fuel momentum can keep stocks higher.
According to Eric Sheridan, co-business leader of Goldman Sachs' TMT group, the launch of Deepseek, a cost-effective AI model from Chinese startups, was a “existential moment” of AI trade.
“The focus is on payoff or return dynamics,” Sheridan told Business Insider. “How do you see companies using AI? How do you see consumers adopting AI applications in their daily lives?
Does AI technology offer the promise to increase productivity and profitability? Investors will soon turn to the second quarter revenue season for answers.
Big tech companies have poured billions into building AI infrastructure, and there is a lot of debate on Wall Street about how much more companies can spend.
As of February, Amazon, Microsoft, Alphabet and Meta's total AI investments in 2025 exceeded $300 billion, a marked increase from $246 billion spent in 2024.
Competition in the AI space is fierce as large technology companies compete to develop better large language models. And it's still in the early stages. In other words, this level of capital expenditure can continue into the future.
“There's still a pretty low visibility into what they're going to spend next year,” Sheridan said of the big companies.
“I wouldn't put a high probability on slowdowns,” he added.
A lot of money and effort is poured into AI tools for businesses, but investors want clear indications of what that means.
Investors do that Look for clues to call revenues that AI adoption is accelerating. They're not just interested or not nvidia We will strike the expectations of consensus. They are They are also looking for wider adoption of AI among other companies.
Investors have reason to be optimistic as there was green shoots in the previous months. Early indications of AI adoption are primarily manifested in the software industry as companies employ agent AI to autonomously complete tasks.
