©Reuters
Investments — Big tech companies have taken a breather from the recent selloff, but the group's flurry of earnings revisions that sparked the market's rally since October suggest its grip on market leadership remains strong. ing.
In a note, UBS cited positive earnings revisions for the six largest TECH+ stocks, including NVIDIA, for the first time since October, and said, “The data shows market breakthroughs and “It shows that narrow leadership is justified.” Corporation (NASDAQ:), Meta Platforms Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Microsoft Corporation (NASDAQ:), Alphabet Inc Class A (NASDAQ:), and Apple Inc (NASDAQ:).
Since October, revised earnings for the six largest TECH+ companies have increased by 8.9%, led by NVIDIA, which accounted for just over half of profits. Apple, on the other hand, has been a laggard, with revised earnings down 0.3% on concerns that increased competition will curb demand for iPhones.
Looking ahead to the rest of the year, UBS adds that the top six TECH+ stocks are expected to see EPS growth of 26.3%, dwarfing the 6.1% growth expected for the remaining stocks. . Nvidia is expected to deliver his 93.6% EPS growth, well ahead of second place Meta's 33.9%.
In a sign that this group of tech stocks is likely to remain in favor, the bank added that earnings estimates above TECH+ fell by 3.0%, weighed down by weak corrections in energy, materials and healthcare. Ta.
