Today is Wednesday. That means it’s time for Yahoo Finance’s Tech Week. I’m Dan Howley. This week is all about revenue. Alphabet (GOOG, GOOGL), Amazon (AMZN), AMD (AMD), Apple (AAPL), Meta (META), Microsoft (MSFT), and Intel (INTC) each provide investors with information on their financial performance over the past few months. We provide the latest information. And AI is considered a top priority across the board.
Alphabet and AMD reported earnings on Tuesday, and while both companies posted strong results, Alphabet beat Wall Street expectations on revenue and bottom line, while AMD met expectations on revenue and beat expectations on earnings per share. , the stock prices of both companies are trending in opposite directions. Alphabet stock headed higher, while AMD stock fell.
In addition to the financial rush, there was another big topic this week. It’s a flurry of product announcements from Apple. The company not only released the first batch of Apple Intelligence features through software updates for iPhones, iPads and Macs, but also announced a range of new Mac laptops and desktops and two new high-performance chips.
It’s been a week so far, and there are still two days left.
Big tech’s earnings season feels like it’s been compressed into a single week, which is both a blessing and a curse. Sure, I can get all the work done in one shot, but it also means my keyboard is getting quite a workout.
AMD CEO Lisa Su gives an opening speech at the COMPUTEX Forum in Taipei, Taiwan on June 3, 2024. (Reuters/Ann Wang/File photo) · REUTERS / Reuters
Google’s parent company Alphabet and AMD both reported strong financial results on Tuesday, but investors weren’t happy with AMD’s guidance for the quarter, sending the stock down more than 9% in early trading Wednesday. . Meanwhile, Alphabet shares rose more than 6% on the back of growth in AI and cloud businesses.
AMD said it expects fourth-quarter revenue to be between $7.2 billion and $7.8 billion, slightly short of expectations of $7.55 billion. It’s not the kind of beat or raise that Wall Street expects from the name of an AI chip. Still, even at the lower end of the guidance, AMD’s fourth-quarter revenue would increase by $1 billion compared to $6.2 billion in the year-ago period.
Despite traders’ disappointment, CEO Lisa Su said there was “insatiable demand for more computers” among customers.
Alphabet, on the other hand, is doing well thanks to growth in advertising and cloud services revenue. Ad sales exceeded expectations, jumping to $65.8 billion in the most recent quarter from $59.6 billion in the same period a year ago, and cloud revenue increased by a whopping 35%.
Both companies have benefited from Google’s AI investments, and Alphabet’s AI for cloud platforms has helped it attract enterprise customers and improve its advertising services. But Alphabet has many competitors, including Microsoft, which we’ll report on after the bell on Wednesday, and Amazon on Thursday. There will be a lot of news related to financial results in the future, so please look forward to it.
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Apple is also having a tough week with updates to its iMac, Mac mini, and MacBook Pro series of desktops and laptops. Debut of two new chips (M4 Pro and M4 Max). and the deployment of its Apple Intelligence platform.
The new iMacs get a performance upgrade from the company’s M4 chip, which first debuted with the new iPad Pro in May. Apple also equipped iMac with a new nanotexture display coating to reduce glare and the company’s Center Stage camera, which keeps subjects in the frame during video calls.
MacBook Pro is available in both 14-inch and 16-inch models. (Apple) · Apple
The Mac mini, on the other hand, has been completely redesigned, reducing its footprint to 5 inches by 5 inches. Despite its small size, this little mini is more powerful than its predecessor thanks to the inclusion of Apple’s M4 chip and the option to upgrade to the new M4 Pro for an even bigger performance boost.
Then there’s the MacBook Pro, available in the M4, M4 Pro, and M4 Max. Apple says the Pro can also be equipped with an iMac-like nano-texture display, and battery life is now up to 24 hours.
All systems are built with Apple Intelligence in mind. Apple Intelligence, available on iOS 18.1, iPadOS 18.1, and macOS 15.1, is the company’s first major step into the generative AI space. However, the company plans to release the software in stages from the end of this year to 2025. Nor does the initial feature set completely wow consumers.
The platform’s flashiest feature is the notification summary for texts, news updates, and other messages. But Apple has added ChatGPT integration to Siri and plans to release an Apple Intelligence update in the coming months, which should prove to be even more exciting.
To learn more about Apple Intelligence, check out my review.
Other technical stories
That’s not the only thing happening in the tech industry this week. Check out other stories to follow.
X algorithm feeds political content to users whether they want it or not (via WSJ)
Reddit is profitable for the first time in history and has nearly 100 million daily users (via The Verge)
Samsung’s smartphone crown falls into crisis for the company (via Financial Times)
PlayStation closes Firewalk Studios after exiting video game ‘Concord’
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Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter @Daniel Howley.
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