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The “Magnificent 7” tech giants have recently reported their earnings for the latest quarter, with 6 out of the Magnificent 7 beating analysts expectations, showcasing strong performance across the board. However, NOT ONE of them was up on the day and only Apple was up for the month…. Barely.
So is the price action giving us signs that the AI rally is finally running out of steam? We think so
NVIDIA reported record-breaking results for Q4 2025, with revenue soaring to $39.3 billion, a 78% increase year-over-year and a 12% rise from the previous quarter1. The company’s data center segment was the star performer, generating $35.6 billion in revenue, a staggering 93% year-over-year increase. This growth was primarily driven by robust demand for their Blackwell and Hopper 200 product lines.
The Blackwell product launch has been particularly successful, achieving the fastest growth rate in NVIDIA’s history and generating $11 billion in revenue during Q4 alone1. The company’s focus on AI infrastructure has paid off, with enterprise revenue nearly doubling year-on-year.
Microsoft reported impressive Q4 CY2024 results, with revenue reaching $69.63 billion, a 12.3% increase year-over-year. The company’s GAAP earnings per share stood at $3.23, exceeding analyst expectations. Microsoft’s Intelligent Cloud segment, which includes Azure, generated $25.54 billion in revenue, while Azure’s constant currency revenue growth was 31% year-on-year.
Amazon’s Q4 FY2024 performance was strong, with net sales reaching $187.8 billion, a 10% increase over the previous year. The company’s net income nearly doubled to $20 billion, with diluted earnings per share rising from $1.00 to $1.86. Amazon’s success was driven by a busy holiday shopping season, steady growth in online retail, and increased advertising income.
Apple delivered its best quarter ever in Q1 FY2025, with total revenue reaching $124.3 billion, a 4% increase year-over-year. Net income rose to $36.3 billion, up 7% from the previous year. The company’s gross margin remained exceptionally high at 46.9%, aided by a 75% services margin. Apple’s active device base grew to over 2.35 billion globally, an increase of approximately 150 million from the previous year.
Tesla’s Q4 2024 results were somewhat disappointing, with revenues of $25.7 billion falling short of analyst expectations. However, the company has pledged a return to growth in 2025, which led to a 4% increase in after-hours trading. Tesla’s automotive sector faced challenges, with total auto revenues dropping 8% in Q4 compared to the previous year.
Meta Platforms reported strong Q4 2024 earnings, surpassing analyst forecasts with earnings per share of $8.02. Revenue increased by 20.63% year-over-year, reaching $48.39 billion. CEO Mark Zuckerberg emphasized the importance of AI for Meta’s future, stating that 2025 will be a crucial year for the company’s AI initiatives. Meta’s Reality Labs division, focused on virtual and augmented reality, generated $1.1 billion in revenue but recorded an operating loss of $5 billion.
Alphabet reported robust Q4 2024 results, with consolidated revenues increasing 12% year-over-year to $96.5 billion. Google Services revenues rose 10% to $84.1 billion, driven by strong performance in Google Search and YouTube ads7. Google Cloud revenues saw significant growth, increasing 30% to $12.0 billion. The company’s total operating income increased by 31%, with the operating margin expanding by 5 percentage points to 32%.
The price action around the most recent earnings has been a clear signal that while investors still believe in the AI thematic and the MAG7, they aren’t willing to risk giving away profits and are banking some of the last 2 years “magnificent” bull run
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